- SIGMA BULL
- Posts
- Warren Buffet's ACTIONS are screaming THIS - MAY 2024 (#19)
Warren Buffet's ACTIONS are screaming THIS - MAY 2024 (#19)
When you beat the game....
Warren Buffett’s ACTIONS are screaming THIS - MAY 2024 (#19)
Welcome dear reader. Your dude Brent, like many other investing nerds, is an admirer of the legendary investor Warren Buffett. Warren Buffett’s actions right now are yelling something loud and clear… in fact I’d even say they’re screaming it.. but what exactly? Stay with me and find out…
Advertisement
This tiny company has all but cemented itself in the future list of bitcoin mining giants.
An industry shakeup of environmental regulations could spell catastrophe for others, while this company begins to soar.
The underlying factors?
Cheap production and carbon neutral mining.
But that’s just the start of it.
Subscribe to Bullseye Trade to learn more.
Motivation
When it comes to following the greats, do as they do, not as they say.
Money
TLDR; Warren Buffet actions speak louder than his words. Although he speaks positively about the current stock market, 1/3rd of his portfolio is in CASH right now, awaiting future opportunities. May be wise for you to do the same.
Warren Buffett is largely considered the Michael Jordan of investing. His company, Berkshire Hathaway, just had its annual shareholder meeting, which is essentially Woodstock for capitalists. Investors come from all around the globe to hear Buffett’s sage wisdom and analyze every word that comes out of his mouth. While he does drop some wisdom bombs on occasion, I think his actions say far more than his words ever could.
You see, Buffett isn’t one to ruffle feathers… He’s a folksy old Midwestern man to a tee. Whenever he talks it’s gushing with optimism about America and the markets, RARELY anything negative. This latest shareholder meeting was no different. From hearing him talk about things you’d think he would have virtually all of his money invested in the stock market…. However, that couldn’t be further from the truth…
His portfolio is currently only about 63% stocks!!! THE master stock market investor has only 2/3rds of his portfolio invested in the stock market right now!!! And before you ask, he’s only got 3% in bonds, and the remaining 34% is in CASH and cash equivalents (things that are easy to sell and give you a little interest like US treasury bills). That 34% of his portfolio translates to 167 BILLION DOLLARS in cash!!!
This cash pile is so large that he was asked about it at the conference over and over. Questions like, ‘Will he be buying anything soon?’, ‘Will his company pay a dividend.’ He generally evaded the question, but made clear he wanted to have the cash there in case ‘opportunities’ presented themselves.
You see, Warren Buffett virtually never says what he thinks of current economic conditions, or how reasonable or unreasonable current stock prices are. So you have to look at what he DOES. And right now he seems to think he’s better off piling up money than make big purchases.
At the conference he even made a point of praising Apple and their CEO Tim Cook for how wonderful they were, talked about how much he loved holding their stock. However, he had just sold off a large portion of his Apple stock, growing his cash pile!
Now does this mean you should be all in cash!? No! Buffett still has nearly 2/3rds of his money invested so that’s not the lesson we should come away with at all. My interpretation of this is, just as I have said previously, it’s a good idea to have a good chunk of cash or cash equivalents to be ready for opportunities when they come up! Warren Buffett sure seems to think they will…
Oh, and on the subject of cash equivalents, here’s a great article about some good money markets for your brokerage account.
FINAL MEMES
WARNING: Below button reveals an offensive meme that is intended for you ONLY if you are a horrible person. Consider yourself warned…
That’s all folks!
RATE TODAY'S NEWSLETTERWhat'd you think of today's edition? |
Have a question? Reply on this email!
Copyright (C) 2024 Ann Royal Advisors All rights reserved.
The information contained on this Newsletter and any resources available for download through this newsletter are not intended as, and shall not be understood or construed as, financial advice. I am not an attorney, CPA, or financial advisor, nor am I holding myself out to be, and the information contained on this newsletter is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.
Question? Comment? Concern? Email me here:
[email protected]
Reply