VituVingiSana wrote:slick wrote:For all those in tears over their losses at the NSE,take comfort that the world's greatest investor ie Warren Buffet aka Oracle of Omaha,portfolio is also taking a massive beating as below
Though Buffet wasnt all in and had his biggest cash hoard position in his history ie over 120 billion so as to pick bargains when markets crash.Of course Buffet wont go hungry due to the losses in his portfolio but it shows most of us are in the same boat in this market decline
Do note that the unlisted portfolio is also huge. It has also taken an earnings hit under COVID19 but the firms might come out stronger than the competition once we get over the current crisis.
The $120bn is HUGE in this time. And he can borrow even more at 0-1% given the strength and ratings of BH.
But Buffet is very sly.He bought up these airline stocks that have been decimated in recent weeks so cheaply knowing that they will be bailed out.These Airlines like Delta airlines,that wasted 96% of their free cash flow and proceeds from borrowing cheaply in the corporate bond market on stock buybacks to pump up their stock and have executives who bought stock for themselves cheap before the stock buybacks to enable them cash out at massive profits to themselves from dubiously inflated stock prices are now begging for a bailout and true to form the Fed and US government will bail them out.At least this time,the bailout strings attached are that companies that get bailed out do not engage in stock buybacks and executives giving themselves fat bonuses.We shall see if those caveats will be adhered to.One should not forget that in the housing bubble the Wall Street banks that cause the housing crash GFC got bailed out by the Fed and government and the bank executives used the bailout money to pay themselves ludicrously large bonuses.
It is this irony that Delta Airlines corporate bonds were downgraded to junk yet stock had its biggest gain in 12 years in Tuesday's trading because of the bailout and Buffet will benefit from the bailout money as he did in the 2008 bailouts at taxpayers expense.Buffet will recover from all the unrealized losses he has made and make even more billions from the multi-trillion bailout packages at taxpayers expense.
Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money