Berkshire Hathaway

Warren Buffett’s $12 Billion Stock Purchase Analyzed

Back on January 31, I blogged about famous stock investor Warren Buffett informing talk show host Charlie Rose he bought $12 billion (net) of common stocks since Election Day.

The third richest man in the world and his equity purchases were the focus of an article on the FOX Business Network website today. Matthew Frankel reported:

According to Berkshire Hathaway’s latest SEC filing, Warren Buffett and company had an active fourth quarter in 2016. After sitting on a company record $85 billion cash hoard at the end of the third quarter, and having said that Berkshire spent $12 billion on common stocks in the wake of Donald Trump’s election victory, investors have been wondering what Berkshire has been up to. Here’s the answer.

While we don’t necessarily know the reasoning behind Berkshire’s latest investments, or whether they were initiated by Warren Buffett himself or one of his trusted stock pickers, we do know what changed in Berkshire’s portfolio during the fourth quarter. Here are the most notable buys

(Editor’s note: Bold added for emphasis)

I’m not going to steal Frankel’s thunder here. Head on over to the FBN website here to read what the “Oracle of Omaha” has been acquiring.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information contained herein.)

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Thursday, February 16th, 2017 Government, Investing, Stocks No Comments

Warren Buffett: ‘We’ve, Net, Bought $12 Billion Of Common Stocks Since The Election’

In an interview aired Friday, famous stock investor Warren Buffett told talk show host Charlie Rose that he’s bought billions of dollars worth of equities since Election Day. The “Oracle of Omaha” revealed to viewers:

We’ve, net, bought $12 billion of common stocks since the election…

(Editor’s note: Bold added for emphasis)


“Buffett Says He’s Bought $12B In Stock Since Election”
Bloomberg Video

I just blogged about Buffett last Wednesday concerning his belief the United States will be fine under a Trump administration and his long-term outlook for stock prices. From that January 25 post:

Last Thursday, famed investor and Hillary Clinton backer Warren Buffett spoke to CNBC about his thoughts on the United States with Donald Trump at the helm. The third-richest man in the world told viewers:

Certainly he has the most important job in the world. But, America works. And I’ve said this before, it would work wonderfully under Hillary Clinton. I think it will work fine under Donald Trump. We’ve got the “secret sauce.” And it doesn’t work all the time perfectly. But you just look at where we go- milestone after milestone. And, never bet against America.

(Editor’s note: Bold added for emphasis)

The chairman and CEO of Berkshire Hathaway also talked stocks. He predicted:

I have no idea what the stock market’s going to do in the next year. I do know it will be a lot higher 10 years from now and 20 years from now

(Editor’s note: Bold added for emphasis)

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information contained herein.)

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Tuesday, January 31st, 2017 Government, Investing, Stocks No Comments

Quote For The Week

“It’s an election year, and candidates can’t stop speaking about our country’s problems (which, of course, only they can solve). As a result of this negative drumbeat, many Americans now believe that their children will not live as well as they themselves do. That view is dead wrong: The babies being born in America today are the luckiest crop in history…

For 240 years it’s been a terrible mistake to bet against America, and now is no time to start. America’s golden goose of commerce and innovation will continue to lay more and larger eggs. America’s social security promises will be honored and perhaps made more generous. And, yes, America’s kids will live far better than their parents did.”

-American businessman, investor, and philanthropist Warren Buffett, taken from his just-released annual letter to Berkshire Hathaway shareholders

As someone who followed the billionaire investor on a regular basis as Editor of Investorazzi.com, “Tracking the World’s Greatest Investors,” I find the mainstream media all too happy to disseminate Buffett’s optimism when the economic picture isn’t looking too pretty.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

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Quote For The Week

Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939, but I think civilized people don’t buy gold, they invest in productive businesses.

-Charles Munger, Vice Chairman and partner of Warren Buffett at Berkshire Hathaway, in a CNBC interview last Friday, May 4

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Warren Buffett Still Bullish On America, But Not The Dollar

On Wednesday, April 20, I revisited one of my original “crash prophets,” Warren Buffett, to see what the “Oracle of Omaha” thought might be in store for the U.S. economy down the road. In the latest Berkshire Hathaway Inc. Shareholder Letter that was released on February 26, Buffett, its chairman and CEO, stated that, “America’s best days lie ahead.” However, the third richest person in the world (2011 Forbes list) didn’t share that bullish outlook for the U.S. dollar. From that April post:

The Motley Fool’s Rich Smith wrote on the MSNBC website on March 28:

Let the word go forth: On Friday, March 25, 2011, Warren Buffett predicted the decline of the U.S. dollar.

In a speech given in New Delhi (where he’s hunting up some cheap Indian stocks), the chairman of Berkshire Hathaway warned investors to avoid “long-term fixed-dollar investments” such as 10-year U.S. Treasury bonds. Buffett worries that the $2.3 trillion in new money our government has pumped into the economy, when combined with interest rates so low they’re practically giving money away, are combining to dilute the value of the dollar.

As a result, Buffett warns: “If you ask me if the U.S. Dollar is going to hold its purchasing power fully at the level of 2011, 5 years, 10 years or 20 years from now, I would tell you it will not.”

What’s more, he’s matching actions to words. Over the last couple of years, Buffett has been selling off longer-dated bond holdings, shifting assets into cash and shorter-dated paper. Berkshire’s holdings of debt dated longer than 10 years dropped 31% over the past 18 months, while Berkshire’s cash holdings leapt 56%.

This weekend, the annual Berkshire Hathaway shareholders meeting took place in Omaha, and Warren Buffett shared his forecasts for the United States and its currency with attendees. Reuters’ Ben Berkowitz wrote yesterday:

Tens of thousands of Berkshire Hathaway shareholders who descended on Omaha this weekend for the conglomerate’s annual meeting got one unmistakable message from Buffett — no matter how bad the economy, or the deficit, or the political divide, the United States is as good a place to live and work as ever.

“I don’t see how anybody can be other than enthused about this country,” Buffett told Berkshire (BRKa.N) shareholders on Saturday…

The comments echo those Buffett made in February in his annual shareholder letter, but the words still may encourage investors looking sideways at the country, particularly after Standard & Poor’s put the U.S. government’s critical “AAA” credit rating on a negative credit watch.

Buffett told Reuters Insider that S&P’s move was premature, given the U.S. government issues debt only in dollars and can simply print more money to pay debt if absolutely needed.

“The United States is not going to default on any obligation,” Buffett told Insider in an interview after the annual meeting. “We are not a credit risk, believe me.”

Furthermore, “The World’s Greatest Investor” isn’t worried about another banking crisis anytime soon. Berkowitz added:

Buffett also affirmed his support for the banking sector, where he has big bets on Wells Fargo (WFC.N) and U.S. Bancorp (USB.N), calling the odds of another banking crisis “very very low.”

However, Buffett is still wary of the greenback. From the piece:

Where Buffett’s enthusiasm wanes to any degree, it is mostly in conversation on the dollar, which he said is sure to weaken over time, like most other currencies.

Buffett, as usual, said he was shying away from fixed-income investments for Berkshire’s part, even as he keeps some of his personal wealth in Treasuries for safety’s sake.

Source:

Berkowitz, Ben. “UPDATE 1-Buffett remains solid on the American economy.” Reuters. 1 May. 2011. (http://www.reuters.com/article/2011/05/01/buffett-economy-idUSN0113337320110501). 2 May. 2011.

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Survival And Prosperity
Est. 2010, Chicagoland, USA
Christopher E. Hill, Editor

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