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The only financial planning a financial planner is planning for is his our her own financial position.
You mean the same Warren Buffet who is currently sitting on $122 billion in cash instead of investments? That’s almost 40% of all the money he’s in charge of.The gutters are full of investors who presumed to predict, "When this or that will happen..." Mr. Buffett's successful, but dry, seemingly mundane, advise to diversify for the long term does not rely on crystal-balling the future.
The only financial planning a financial planner is planning for is his our her own financial position.
You mean the same Warren Buffet who is currently sitting on $122 billion in cash instead of investments? That’s almost 40% of all the money he’s in charge of.
Here's why Warren Buffett's record $122 billion cash pile could be a worrying sign for stock markets
markets.businessinsider.com
That is plain cash, not cash flow. Buffet himself said that he hates cash, because it doesn’t grow. The fact that he’s keeping that much cash around only means that he can’t currently find enough good investments, the ones where the reward outweighs the risk.Cash flow vs net worth as I have described above, hence I don’t disagree with Buffet at all.
That is plain cash, not cash flow. Buffet himself said that he hates cash, because it doesn’t grow. The fact that he’s keeping that much cash around only means that he can’t currently find enough good investments, the ones where the reward outweighs the risk.
One way the rich becomes richer is by buying stocks and properties when a recession makes them cheap. If Buffet uses that $122 billion to buy stocks today, he’ll probably get less than in 5% return next year, while running the risk of losing 50% of it when the recession hits. If he keeps the cash and buys at the bottom, he’ll double it within 6 years.
That’s basically what I said. Today there isn’t enough good stock investment deals, so he keeps almost 40% of his fund as cash under the mattress.Or he could be just waiting for a good deal.
That’s basically what I said. Today there isn’t enough good stock investment deals, so he keeps almost 40% of his fund as cash under the mattress.
When the recession hits, he’ll be able to buy most things at 50% discount or lower. Buffet’s Berkshire Hathaway deals in property. They will scoop up a lot of cheap real estate when people fall behind on their mortgage, and bankrupt companies stopped paying rent. He’ll go to the banks suffering a liquidity crunch and wave green cash, so they’ll sell their asset at even more discount.
Since you deal in property, it’s an opportunity for you as well to follow his footsteps. Next year there could be a lot of cheap / discounted real estate properties available.
I was here in 2009 when foreclosed houses were selling for very low prices. Too bad I didn’t have money to buy any.
You mean the same Warren Buffet who is currently sitting on $122 billion in cash instead of investments? That’s almost 40% of all the money he’s in charge of.
Here's why Warren Buffett's record $122 billion cash pile could be a worrying sign for stock markets
markets.businessinsider.com
he keeps almost 40% of his fund as cash under the mattress
Buffet’s strategy is known as “value investing”. He finds stocks that have good fundamental earning potential but are undervalued.I don't think Buffet is turning into a market timer. Perhaps the deals he is exploring simply have not come together for any number of reasons.
Made a mistake with silver a few years ago
Assuming he’s not timing the market, the fact that he’s hoarding cash means most of the investments available today are overpriced. When things are overpriced, a market correction always follows eventually. Another name for a correction is a recession.
Made a mistake with silver a few years ago...didn't buy much, just a few coins..thinking that those who thought gold were too expensive might look at silver...well, a few years later i probably about breakeven.
and heavier!!Ya, much more volatile than gold.
The terms "over valued" or "over priced" and "correction" both are popular euphemisms for an expectation of a market down turn. A bit pretentious in my view. Describing the market's anticipated path in superlatives as in A "always" follows B could be correct as much as 50% of the time.
Another reason Mr. Buffett may be hesitant to commit his cash: he might be anticipating a Democratic Presidential election victory triggering a sell off. Would that an "always," a "never," or something in between?