I don't have a crystal ball, the indicators are there though. 1....

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aaragon

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19/08/19

14:46

Post #: 40040979
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Originally posted by pongosniffa: ↑

i listen to Buffet quite a bit and he's been asked about his stockpile of cash in a few interviews, he's also asked about Berkshire's performance against the S&P index fund, these questions are related.

Berkshire have got so much money it's almost impossible for them to find an investment which has the potential to make more than a blip on their bottom line, they've been stockpiling cash for many years. They've underperformed the S&P for many years, not by much, but it's because they've got this stockpile of cash and cannot find a home for it. Buffett has said if they had a few million to invest they'd be enjoying superior returns because of the opportunities, but with this large pile of cash? He anticipates Berkshire will outperform the S&P but "not by much". I think the story is adding fuel to the fire, a story that could be seen in a totally different light if the narrative on the economy was different. But that doesn't sell newspapers!

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I don't have a crystal ball, the indicators are there though.
1. USA -China economy war at hand.
2. Europe is in a mess, Germany looks like it's going to be another Spain and need to be bailed out.
3. Buffet is loading up on cash, his not going to say that his loading up because he thinks that the global market crash is immiment. Buffet isn't even buying back shares in Bershire Hawthway at the moment, that's not good.
4. Long term charts all show that were at a all time high and whatever goes up MUST come down, that is the way of the world we live in.

https://www.foxbusiness.com/markets/germany-economy-europe-global-recession-andy-brenner
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