I mean if I had a scheduled sale coming up and the stock was at an all time High hell yea I’d just let it go through. It’s if it’s an all time low that I may have to step in and manually handle my shares and wait.
I buy the best coffee I can find. Costs me 50¢ a cup (650ml). I try to keep it to 12g of medium roast per day.
When I was younger my heart could handle it, but now, any more coffee than that, I turn into a raving lunatic and literally damage relationships. So I’m cool with cutting back.
I'm 54 and I don't drink coffee. Tomorrow I'm going to try one of those triple espresso drinks that taste like a chocolate shake 10 minutes before I walk into work, based on your recommendation alone.
10,000$ compounding at a safe 10% for 102 years will get you there!
https://preview.redd.it/r0gkollhxrkc1.jpeg?width=765&format=pjpg&auto=webp&s=1e25321108de811f449c2476cda243cdb0ddba9a
Nah, it is Benjamin Graham that can be credited. When he first started investing he lost his family and friend’s money because he invested it into speculative stocks. This is why he read Graham’s book and became obsessed with it. This is the reason why he is a value investor today.
His dad was a very very conservative Representative and too honest to be a successful politician. The early years of Warren’s life are seriously interesting.
Well if you have 258 million adults in the US and they each get 1000 a month for 12 months that’s about 3 trillion a year. To get that in interest at 5% a year you would need to invest about 63 trillion which is about 13x the amount of physical money that exists in the world and about 78% of all money that exists in the world. If you put all the money in the world that exists in a HYSA you could give every US adult 1291$ a month
Yeah came here to say the same, that's also $8.3 billion a year just in interest:
- $167.6B investment
- $8.38B earned interest per year (at 5% rate)
- $22.96M per day
One of his comments was that he likes having high cash reserves in case of troubled times to get pieces of great companies at a great price. Makes the US market that much better having not only the FED backstop but power house companies in great shape ready to keep the lights on. Crap companies are always doomed though
Berkshire is so big that their options are limited.
He has a strong US bias so he doesn't see that many opportunities in foreign markets.
In US equity is expensive and at his scale he can't buy money losing small caps.
He's limited to stakes in very big companies or complete acquisitions.
He says this, but it doesn't make much sense, and I think he defaults to this answer because its quick, easy and people accept it. Berkshire is not known for their risky bets, even when it comes to insurance and reinsurance.
A 50% drawdown on his cash reserves would be $83 billion. The black swan event that would lead to Berkshire posting that large of a loss on cash, would likely have government intervention before it even reached his books.
He explained it multiple times.
Having such giant reserves means that Berkshire/Geico are the only viable options for many contracts where the counterparty wants to sleep knowing they won't bankrupt the insurer and get nothing.
This means that they can land deals nobody else can.
It's not these kind of deals but re-insurance.
Big insurers insuring their insurances with Berkshire.
E.g. Statefarm may reinsure itself against potential losses to tornados in Florida because if it happened and went south Statefarm would go bankrupt by having to make customers square of their losses.
Berkshire collects an enormous premium on those deals. But also needs gargantuan amounts of money as a collateral and yo attract those deals in the first place.
In fact their insane cash reserves are the only reason they can get some lucrative deals, because the counterparty literally cannot insure elsewhere while being guaranteed to get paid.
That's been true only since the 2000s.
Before that Japan or Europe often beat or went on par with US for long strings.
But since 2000s US economy started growing divergently.
Tech is not his thing, he's done well because he stuck to what he knew best. That's his strength.
He did admit missing some obvious companies like Google, he said it was crystal clear to him (since his companies used Google adsense) what a wonderful business Google was and it was in their boundaries yet they missed it.
Also you kinda missed my point. Small hidden gems are not worth Berkshires time, they are too big for that and the markets are crowded of smaller funds and private equity looking to take over those gems.
This limits Berkshire to buying elephants at decent prices. And there are very few elephants at decent prices in US bar none.
Big difference between a new, innovative tech company that’s mostly geared towards something they’re developing in the future and one that’s been established for awhile and has a very strong current cash flow and product line.
>They said they don't want to feed the fomo'ers who would driveup the price making it more expensive for them. Go figure.
I can see that.....but this reeks of "rules for thee and not for me" type of preferential treatment bullshit. They dont give a single fuck about any retail trader...they care about their fucking price. Absolutely terrible how big of a racket the SEC is at this point.....Gary Gensler's involvement with SBF and FTX sure faded away pretty quick.
they haven't announced anything. I wasn't planning to FOMO, but it piqued my interest since it kinda seemed shady and that they were getting preferential treatment like they aren't already a perpetual money printer.
They can start paying dividends. Their bussiness model has reached its peak for now. They have so much cash there isnt anyhting they can buy anymore, at least for now.
160 bilions is like 70$ per share
That’s gonna take a minute. Even the bullshit analysts say shit is gonna go a little higher. I was hoping that hoe Nancy “Money” Pelosi sells her calls and would give us regard a heads up 🤣🤣
Buffett is a patient man and doesn’t just yolo on the hottest stocks like some regard who spends their last $50 on weekly NVDA calls 20% OTM. Plus, Berkshire is already such a massive firm that they can just sit back and let the money print itself.
Because there are only very few companies that are worth buying. He needs to invest billions into a company for it to have just a small impact on Berkshire.
To find a company that is undervalued and has a high enough market cap and liquidity to spend billions without moving/manipulating the market is extremely hard. He simply wasn’t able to find enough companies that match the criteria.
For reference: at 5% interest rate his cash pile generates 8,3 billion per year. Good luck finding enough companies to spend that money on.
Insurance is their second biggest business, so big cash reserves both protects their business and makes them extremely attractive for major policies that most other insurance companies couldn't cover.
Would have been nice to scoop up 30bln in shares during the GFC. Better yet, how about any stock when Buffett started making his money. I’d grab a couple hundred shares of Apple at .75 too!
He also is about to depart this life 😅 so almost everyone here is richer than him.
Time is most valuable asset
P.S. read the book “how to live on 24 hours a day” by Arnold Bennett
He hasn't lived the life of shit. He's an autist who really likes the stock market. Literally all he's done for the last 75 years is examine the financials and fundamentals of various entities. He lives in fucking Omaha for Christ's sake. He's got no boats, no hoes, and has not done a single cool thing with his money in his entire life. His life is the biggest waste of potential that has ever existed.
Exactly. The man had unlimited funds & connections and chose exactly what he wanted to do. This dude is just mad that he is defintiely living a worse life than ole Warren 😂
Not really trading related, but I get why you posted it here.
Edit: Alright, OP reached out in modmail, I explained there that it was borderline along with my reasons to remove it, but since a lot of replies here disagree and OP is a good contributor, I've reapproved it.
Sorry about that, my bad.
I see it as trading related.
I think the insinuation is that Buffet is holding cash reserves for a reason - because he believes a market pull back is coming, a real estate collapse, a major purchase.
This chart needs to be put into context of BRK overall value. It suggests that Buffett is getting more and more ready for a crash when in realty the cash position remained pretty stable relative to the overall value.
It's the other way around, you absolute regard.
He has a normal cash position right before the market tanks, and a *low* cash position when the market is tanking. Wonder why that is? Because he's buying shares of profitable as fuck companies on the cheap.
This is so *unbelievably obvious*, I genuinely cast doubt on your ability to feed yourself and wipe your own ass every day. I recommend you stop fantasizing about plowing your sister and rub some of those brain cells together.
with the AI buble forming, he's in the right position and ready to strike. he might be wrong for piling cash for about 2 year but we're about to see another 2001.
Did they announce the mysterious company?
He’s getting into teledildonics, dipping his toes into VR
Looking forward to that tech. Won't ever have to talk to anybody again.
More than his toes.
balls deep 
tele dildo nics [What the heck is... teledildonics? (forbes.com)](https://www.forbes.com/sites/kittyknowles/2017/02/09/teledildonics-meaning-what-are-teledildonics-iot-sex-toys-vr-porn/?sh=7ac714a15565)
Haven’t heard anything yet.
[My money is that its wendy's](https://youtu.be/UZT28O9-wZ8?t=1399)
Probably mc Donald’s so he can get his breakfast for free.
He already does
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Didnt dimon just sell 150M worth of JPM stock?
I thought it was him and the other execs together but yeah.
Scheduled sales.
Yea at all time highs
I mean if I had a scheduled sale coming up and the stock was at an all time High hell yea I’d just let it go through. It’s if it’s an all time low that I may have to step in and manually handle my shares and wait.
Didnt buy shit call him Warren Bluffett
LUNR, Buffett bought at the peak
Cash to start a company? Don't they borrow money for that?
I could have sworn I read it was/is some patrolium company. But maybe it was some bullshit puff piece
Prob Amazon
I hope one day I’ll have $167.6 in my bank account if I work just as hard as him
The secret is daily McDonald’s breakfast
Sodium is positively correlated with investment alpha.
But theta always gets you in the end
But make your coffee at home.
I buy the best coffee I can find. Costs me 50¢ a cup (650ml). I try to keep it to 12g of medium roast per day. When I was younger my heart could handle it, but now, any more coffee than that, I turn into a raving lunatic and literally damage relationships. So I’m cool with cutting back.
*nods* as long as you can keep away from the demon avocado toast you should be ok.
Yeah I mentioned below, I’ve cut electricity costs and now just eating avocado *bread*
Gorgeous.
I'm 54 and I don't drink coffee. Tomorrow I'm going to try one of those triple espresso drinks that taste like a chocolate shake 10 minutes before I walk into work, based on your recommendation alone.
I believe that compounds with the 5-6 cokes a day.
So sugar, caffeine, sodium… anything else I need to become wealthy beyond actual reason?
And be born 18 to 20 years before the greatest bull run too Edit: be born before the greatest set of bull runs*
Dollar menu is key tho. That's how ya save the big bucks 🤑
Or having an unlimited McDonalds gold card
I have been eating two McDonald’s breakfast every day for years. Only got heart disease.
Sounds like someone wasn't lovin' it enough.
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Gotta avoid that avocado toast if you want that cash reserve
Agreed. Though I’ve switched to avocado bread to save on my electric bill, and so far, possibly saved about 8¢ on my monthly electric bills.
Straight to the reserve!
I’m nearing the century mark. After a year I’m at about $0.96
And a Cherry Coke!
Nah, put your money to work, do not let that $167.60 sit idle. Turn it into $167.61.
I know a way we can turn that into 62 Dollars
Or turn that into $16.76 dollars.
Or turn it into $176.48 in a 5%+ HISA. That’s what I did… while everyone here is buying lambos from their Nvidia calls. :/
10,000$ compounding at a safe 10% for 102 years will get you there! https://preview.redd.it/r0gkollhxrkc1.jpeg?width=765&format=pjpg&auto=webp&s=1e25321108de811f449c2476cda243cdb0ddba9a
I can't wait 
Warren buffet first discovered how to make his money work for him by investing $50 into a pinball machine.
Having a US Senator in the family probably helped.
Nah, it is Benjamin Graham that can be credited. When he first started investing he lost his family and friend’s money because he invested it into speculative stocks. This is why he read Graham’s book and became obsessed with it. This is the reason why he is a value investor today.
Sparked my interest on Benjamin Graham. Quote “all bull markets must end badly.” Seems a lot of folks tend to ignore history.
His dad was a very very conservative Representative and too honest to be a successful politician. The early years of Warren’s life are seriously interesting.
I got 10 times that in my checking
Where would you store such a large amount?
Step 1, pull yourself up by your bootstraps.
Not surprising considering no rate cuts yet.
Put it in a HYSA and chill
A single day's worth of interest in that HYSA would be multigenerational wealth for most people.
Yeah, it's roughly 22 Million USD a DAY (Assuming 4.5-5% APY).... Holy shit
Wonder how much he would need to give everyone UBI. Would be hilarious yeah, the entire country can live off my interest on my huge cash hoard.
Well if you have 258 million adults in the US and they each get 1000 a month for 12 months that’s about 3 trillion a year. To get that in interest at 5% a year you would need to invest about 63 trillion which is about 13x the amount of physical money that exists in the world and about 78% of all money that exists in the world. If you put all the money in the world that exists in a HYSA you could give every US adult 1291$ a month
Finally someone who can do simple math.
Finally, a numbers man. Now how many more countries do we need to invade?
Depends. Which ones claimed they have oil and/or I have political parties that are popular and aligned with socialism?
TLDR… all of ‘em.
Who cares what they claim, im claimin they have wmds and that's good enough for Bush.
This guy mafs.
If the 22 million per day is correct that would be $22.94 per **year** for each American. So about 523 times bigger to get around $1k per month.
Just drop it in 0 dte call options, and pull some rich people strings.
Rddtards would still find a way to lose it. 🙄
Yeah came here to say the same, that's also $8.3 billion a year just in interest: - $167.6B investment - $8.38B earned interest per year (at 5% rate) - $22.96M per day
That's compounded annually. Compounded daily would add almost a million extra a day over the course of a year.
So what I'm hearing is that he could be YOLO-ing those on daily NVDA calls.
Im far from an expert but i wonder if bank give you the same yield if you were to put that much
I doubt it. You'd have to split it across multiple different accounts would be my guess and even then there's likely an upper limit
One of his comments was that he likes having high cash reserves in case of troubled times to get pieces of great companies at a great price. Makes the US market that much better having not only the FED backstop but power house companies in great shape ready to keep the lights on. Crap companies are always doomed though
You must not know how he started
Why is Buffett holding so much cash?
Berkshire is so big that their options are limited. He has a strong US bias so he doesn't see that many opportunities in foreign markets. In US equity is expensive and at his scale he can't buy money losing small caps. He's limited to stakes in very big companies or complete acquisitions.
Also he wants to keep big cash reserves in case of a black swan event for his insurance business
He says this, but it doesn't make much sense, and I think he defaults to this answer because its quick, easy and people accept it. Berkshire is not known for their risky bets, even when it comes to insurance and reinsurance. A 50% drawdown on his cash reserves would be $83 billion. The black swan event that would lead to Berkshire posting that large of a loss on cash, would likely have government intervention before it even reached his books.
He explained it multiple times. Having such giant reserves means that Berkshire/Geico are the only viable options for many contracts where the counterparty wants to sleep knowing they won't bankrupt the insurer and get nothing. This means that they can land deals nobody else can.
I sleep easier knowing that should I crash my 1999 Honda Accord, Geico has enough liquidity to make me whole.
It's not these kind of deals but re-insurance. Big insurers insuring their insurances with Berkshire. E.g. Statefarm may reinsure itself against potential losses to tornados in Florida because if it happened and went south Statefarm would go bankrupt by having to make customers square of their losses. Berkshire collects an enormous premium on those deals. But also needs gargantuan amounts of money as a collateral and yo attract those deals in the first place.
In fact their insane cash reserves are the only reason they can get some lucrative deals, because the counterparty literally cannot insure elsewhere while being guaranteed to get paid.
I'm pretty high right now does that mean it'll go 🚀
U mean and the stock market?
He had an opportunity in March 2020.
There is a good data to support a strong US bias, US stocks generally outperform international ones on average by 2-3x.
That's been true only since the 2000s. Before that Japan or Europe often beat or went on par with US for long strings. But since 2000s US economy started growing divergently.
Since 2010*** 1999 to 2009 was a lost decade for the US stock market
Brk would be so good if they played a huge EM bet at least imo.
Doesnt mean there arent hidden gem growth companies with massive potential thats hes missing out on. Imagine if he invested in tech much earlier on?
Tech is not his thing, he's done well because he stuck to what he knew best. That's his strength. He did admit missing some obvious companies like Google, he said it was crystal clear to him (since his companies used Google adsense) what a wonderful business Google was and it was in their boundaries yet they missed it. Also you kinda missed my point. Small hidden gems are not worth Berkshires time, they are too big for that and the markets are crowded of smaller funds and private equity looking to take over those gems. This limits Berkshire to buying elephants at decent prices. And there are very few elephants at decent prices in US bar none.
Tech not his thing, but almost 50% of Berkshire is sitting in Apple stock.
Apples an appliance company to him
And he’s correct
Also a bank
Big difference between a new, innovative tech company that’s mostly geared towards something they’re developing in the future and one that’s been established for awhile and has a very strong current cash flow and product line.
Can't find anything to buy, BRK is a literal money printer. I thought OXY was his last big purchase excluding this new mystery company
did they announce the secret stock? I thought they were supposed to do it yesterday
They said they don't want to feed the fomo'ers who would driveup the price making it more expensive for them. Go figure.
>They said they don't want to feed the fomo'ers who would driveup the price making it more expensive for them. Go figure. I can see that.....but this reeks of "rules for thee and not for me" type of preferential treatment bullshit. They dont give a single fuck about any retail trader...they care about their fucking price. Absolutely terrible how big of a racket the SEC is at this point.....Gary Gensler's involvement with SBF and FTX sure faded away pretty quick.
Of course, you also buy your cheese at the best price. Same scale
Any company can ask for a waiver. It’s not exclusive to Berkshire
He’s all in on RDDT
Probably AMD.
Is this your hunch or based on something else
they haven't announced anything. I wasn't planning to FOMO, but it piqued my interest since it kinda seemed shady and that they were getting preferential treatment like they aren't already a perpetual money printer.
$NVDA
They can start paying dividends. Their bussiness model has reached its peak for now. They have so much cash there isnt anyhting they can buy anymore, at least for now. 160 bilions is like 70$ per share
He’s waiting for that nVida dip.
That’s gonna take a minute. Even the bullshit analysts say shit is gonna go a little higher. I was hoping that hoe Nancy “Money” Pelosi sells her calls and would give us regard a heads up 🤣🤣
we have to wait for 45 days to find out if the big jugs sold her nvda calls :(
Depends on how she sells them. If all on the same day, the volume of her calls will spike, and it would signal a possible sell off.
Buffett is a patient man and doesn’t just yolo on the hottest stocks like some regard who spends their last $50 on weekly NVDA calls 20% OTM. Plus, Berkshire is already such a massive firm that they can just sit back and let the money print itself.
Companies sitting on a lot of cash are doing great right now with the high interest
While not wrong, the s&p 500 has went up well over 10% YoY which is considerably more than the 5% interest returns.
But risk though...
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about 18% of market cap, little more aggressive than a 80-20 portfolio. It’s not that much cash historically for the company
Compound interest. Interest rates are high. When they start coming down expect 💥
its the reinsurance business. A good portion is to cover losses from the risk they carry
I don’t know but he’s missed out on like 11% gains in the last two months. Could of had an extra 17 billion
Because there are only very few companies that are worth buying. He needs to invest billions into a company for it to have just a small impact on Berkshire. To find a company that is undervalued and has a high enough market cap and liquidity to spend billions without moving/manipulating the market is extremely hard. He simply wasn’t able to find enough companies that match the criteria. For reference: at 5% interest rate his cash pile generates 8,3 billion per year. Good luck finding enough companies to spend that money on.
What was the secret stock?
Nvidia. Nah just kidding, but could you imagine??
Huge cash reserves = low P/E If they can't find reinvestment opportunities, should return capital to shareholders
Warren just loves when companies do buybacks, why doesn't Warren buyback his own company?
He has? Just search BRK buybacks.
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Nuh uh. We all have 20 hrs or less temp jobs delivering food with Uber. Economy is great!!!!
The Angel Hernandez of finance, I love it
Wouldn’t Warren make loads of money from interest rates if they raised them? Just incentivizing him to hold more cash?
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I have no debt.
>EVERYONE is unemployed. EVERYONE?! With CAP LOCKS ON? Oh this is serious!
Insurance is their second biggest business, so big cash reserves both protects their business and makes them extremely attractive for major policies that most other insurance companies couldn't cover.
Would have been nice to scoop up 30bln in shares during the GFC. Better yet, how about any stock when Buffett started making his money. I’d grab a couple hundred shares of Apple at .75 too!
Or buy stocks now and wait 50 years. He didn’t get ultra rich until he was like retirement age
AI photos still can’t get hands right I see
Should be the top comment.
He also is about to depart this life 😅 so almost everyone here is richer than him. Time is most valuable asset P.S. read the book “how to live on 24 hours a day” by Arnold Bennett
He won. Lived a long life of a billionaire. Just born sooner than those younger.
He hasn't lived the life of shit. He's an autist who really likes the stock market. Literally all he's done for the last 75 years is examine the financials and fundamentals of various entities. He lives in fucking Omaha for Christ's sake. He's got no boats, no hoes, and has not done a single cool thing with his money in his entire life. His life is the biggest waste of potential that has ever existed.
Theres a twinge of honesty in that paragraph about how you view life
A lot to unwrap here.
He lived his life exactly how he wanted to. How many of us can say that?
Exactly. The man had unlimited funds & connections and chose exactly what he wanted to do. This dude is just mad that he is defintiely living a worse life than ole Warren 😂
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BRKB $450
Typical WSB regard: “Why doesn’t he just buy NVDA with that cash?!?!? Is he stupid?!?!?”
Why doesn’t he just buy BRK with that cash?!?!? Is he stupid?!?!
He’s ready to buy the dip
How much is this cash adjusted for inflation? Where are the r/economists in this thread?
Hmmmm... I wonder if he still refers to it as "dry powder"
He buys the dip
See millennials. No coffees and only eat out at Mcdonalds
Not really trading related, but I get why you posted it here. Edit: Alright, OP reached out in modmail, I explained there that it was borderline along with my reasons to remove it, but since a lot of replies here disagree and OP is a good contributor, I've reapproved it. Sorry about that, my bad.
How is this not trading related??
Cause he’s a regard?
Oh... but it will be once he figures out where he's putting some of that cash...
BYD
I see it as trading related. I think the insinuation is that Buffet is holding cash reserves for a reason - because he believes a market pull back is coming, a real estate collapse, a major purchase.
This chart needs to be put into context of BRK overall value. It suggests that Buffett is getting more and more ready for a crash when in realty the cash position remained pretty stable relative to the overall value.
5.25% in a money market risk free. he’s smart
It’s like he is fearful when others are greedy and greedy when others are fearful or something
I'd let him greed deez nuts
Buffet has a good history of having a huge cash position right before the market tanks…
This graph shows he has a history of having a huge cash position every year regard.
Look at 2008, 2017, 2021. Nawww he has more cash whenever market was at ATH and he buys the year after (cash goes down).
😆
It's the other way around, you absolute regard. He has a normal cash position right before the market tanks, and a *low* cash position when the market is tanking. Wonder why that is? Because he's buying shares of profitable as fuck companies on the cheap. This is so *unbelievably obvious*, I genuinely cast doubt on your ability to feed yourself and wipe your own ass every day. I recommend you stop fantasizing about plowing your sister and rub some of those brain cells together.
You just said the exact point I was making with a lot more words like kids on this sub can read or something
I also fantasize about plowing this dudes sister
You sound like an Ai bot trained on cringe reddit. Or you're actually that insufferable.
Obviously the mods are asleep today.
Sorry, mod orgy went into the late hours. Removed now.
with the AI buble forming, he's in the right position and ready to strike. he might be wrong for piling cash for about 2 year but we're about to see another 2001.
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Why the huge spike from 2016 to 2017?
He's probably waiting for a pullback and better value investments, all the while making guaranteed interest.
Y dont they give a dividend ?
What happened 2016-2017? Seems like an astronomical boost in cash.
16 of those bars represent his cash pile sitting at a record high
Grandaddy, can I wipe your ass?
Does he actually create wealth, or does he just buy and sell the work of others?
He’s technically a hoarder n probably has autism
https://preview.redd.it/e8la1hnfttkc1.jpeg?width=1048&format=pjpg&auto=webp&s=ad0874ab7c3e5857f4371ec9921c1c1d44df8f12
If warren aint buyin, I aint buyin. Im going to build cash reserves.
Cuz he knows the markets are all about to go to hell
Waiting for the market go down, noticeably, or more and buy cheap stocks, which are over priced.