|
10-16-2019, 06:58 AM
|
#1
|
Thinks s/he gets paid by the post
Join Date: Aug 2010
Location: Back woods of Fennario
Posts: 1,170
|
Buffett sitting on $122B
Read this article this AM. Two interesting charts: Wiltshire 5000 vs. quarterly GDP and hours of labor required to buy the S&P - both at peaks as you might assume.
The author of the charts and associated commentary says: “Wake us up after the above charts regress to their means, about 40% lower”.
Yes I know this is Marketwatch, but one has to wonder what the oracle is going to do with all that cash.....
(Mods: please move if in the wrong forum - thanks.)
__________________
"Time wounds all heels...." - Groucho Marx
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
10-16-2019, 06:59 AM
|
#2
|
gone traveling
Join Date: Apr 2011
Posts: 3,375
|
OK. Thanks - I guess.
|
|
|
10-16-2019, 07:39 AM
|
#3
|
Thinks s/he gets paid by the post
Join Date: May 2014
Location: Utrecht
Posts: 2,650
|
According to morningstar in 2018 Berkshire had ~30 billion in cash
https://www.morningstar.com/stocks/x...k.b/financials
Still quite a lot, but only ~10% of total equity, which is pretty typical as far as I understood from Berkshire historically.
|
|
|
10-16-2019, 09:05 AM
|
#4
|
Full time employment: Posting here.
Join Date: Apr 2019
Posts: 630
|
I have been putting all of my regular biweekly contributions into a high yield savings instead of the market, and adjusted my AA to about one third stocks, one third bonds, and one third cash, and the cash pile is growing. Usually I'm close to 100% diversified equities. I'm not completely out of the market, but I'm keeping cash on hand for when (not if) the market corrects. Some may call this market timing, and maybe it is, but I call it not buying when valuations don't make sense to me. And if the greatest investor of our lifetime is hoarding cash, who am I to think I can outsmart him?
|
|
|
10-16-2019, 09:10 AM
|
#5
|
Moderator Emeritus
Join Date: Apr 2011
Location: Conroe, Texas
Posts: 18,642
|
Quote:
Originally Posted by dirtbiker
I have been putting all of my regular biweekly contributions into a high yield savings instead of the market, and adjusted my AA to about one third stocks, one third bonds, and one third cash, and the cash pile is growing. Usually I'm close to 100% diversified equities. I'm not completely out of the market, but I'm keeping cash on hand for when (not if) the market corrects. Some may call this market timing, and maybe it is, but I call it not buying when valuations don't make sense to me. And if the greatest investor of our lifetime is hoarding cash, who am I to think I can outsmart him?
|
I'm set up about the same with 30% equities and the rest in municipal bond funds and CDs/Cash. Of course, I am 76 and really don't want to see the market go south for too long. I'll add to equities on dips, but not being aggressive at it.
__________________
*********Go Astros!*********
|
|
|
10-16-2019, 09:32 AM
|
#6
|
gone traveling
Join Date: Sep 2019
Posts: 249
|
Buffett sitting on $122B
If there’s nothing interesting for the investor to invest in, it’s natural to store cash and keep looking
Outside of my mandatory company pension which goes into the S&P index, the rest goes to cash unless something interesting comes up
The good news is that booms and busts work on an inevitable cycle
|
|
|
10-21-2019, 09:20 AM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Syracuse
Posts: 3,501
|
Warren Buffet is running a business. I'm running a life. We require two different cash positions as well as different AA altogether.
But now I'm thinking, most companies we have and equity stake in carry operating cash. Maybe I should average that up and consider it as cash in my AA.
__________________
“No, not rich. I am a poor man with money, which is not the same thing"
|
|
|
10-22-2019, 10:53 AM
|
#8
|
Full time employment: Posting here.
Join Date: Apr 2019
Posts: 630
|
Quote:
Originally Posted by GravitySucks
Warren Buffet is running a business. I'm running a life. We require two different cash positions as well as different AA altogether.
But now I'm thinking, most companies we have and equity stake in carry operating cash. Maybe I should average that up and consider it as cash in my AA.
|
You can't control how that cash is spent and don't have any access to it, so I wouldn't consider it cash in my AA. An equity is an equity, regardless of how much cash the business is holding.
|
|
|
10-22-2019, 12:00 PM
|
#9
|
gone traveling
Join Date: Sep 2019
Posts: 249
|
Buffett sitting on $122B
Quote:
Originally Posted by dirtbiker
You can't control how that cash is spent and don't have any access to it, so I wouldn't consider it cash in my AA. An equity is an equity, regardless of how much cash the business is holding.
|
I agree
I have Berkshire Hathaway shares but I still store my own cash
During down markets, being an investor with cash is priceless
However having said that, it’s unlikely that Berkshire’s share price will move much unless that astronomical cash horde is deployed
|
|
|
10-22-2019, 12:42 PM
|
#10
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: Independence
Posts: 7,280
|
Buffett sitting on $122B
So he's sitting on a 12"x12.5" stack of $100 bills 375 feet high? He best be careful - I get shaky just being up on a 24" extension ladder.
__________________
"Be kind whenever possible. It is always possible." Dalai Lama
|
|
|
10-22-2019, 01:36 PM
|
#11
|
Recycles dryer sheets
Join Date: May 2010
Location: Cincinnati
Posts: 384
|
Buffett's Elephant gun is turning into an Elephant cannon!
He's probably hoping to make that last big acquisition of his career and everything is overpriced or outbid.
I'd like to see some buybacks and a div put in place.
|
|
|
10-22-2019, 08:51 PM
|
#12
|
gone traveling
Join Date: Sep 2019
Posts: 249
|
Quote:
Originally Posted by Cassius King
I'd like to see some buybacks and a div put in place.
|
+1 agreed!
|
|
|
11-03-2019, 08:35 AM
|
#13
|
gone traveling
Join Date: Sep 2019
Posts: 249
|
|
|
|
11-03-2019, 10:36 PM
|
#14
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
Buffett sitting on $122B
Then, how high does he sit?
From the Web: "A billion dollars in $100 bills would weigh 22,000 pounds, over 1,100 cubic feet of bills".
$122B in $100 bills would have a volume of 134,200 cubic feet. If stacked into a cube of equal dimension on all sides, the pile of money would be more than 51 feet high.
If done with $20 bills, the cube is 88 feet high.
With $1 bill, the cube is 238 feet high.
PS. I just saw that Calmloki had the same idea. However, our numbers do not jibe, in terms of the volume of the stack!
Quote:
Originally Posted by calmloki
Buffett sitting on $122B
So he's sitting on a 12"x12.5" stack of $100 bills 375 feet high? He best be careful - I get shaky just being up on a 24" extension ladder.
|
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
11-04-2019, 05:39 AM
|
#15
|
Thinks s/he gets paid by the post
Join Date: May 2016
Location: Mid-Atlantic
Posts: 2,654
|
Quote:
Originally Posted by NW-Bound
$122B in $100 bills would have a volume of 134,200 cubic feet. If stacked into a cube of equal dimension on all sides, the pile of money would be more than 51 feet high.
If done with $20 bills, the cube is 88 feet high.
With $1 bill, the cube is 238 feet high.
|
Well, duh, you don't make a cube, how would you get on and off of it? You make a step pyramid, like the Mayans did!
__________________
-Looking to FIRE in the mid-2020s, which would be our mid-50s.
|
|
|
11-04-2019, 08:17 AM
|
#16
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
Very good point!
So, I recompute, and here are the heights of a pyramid with a side slope of 60 degrees.
With $100 bills: 67 ft high
With $20 bills: 114 ft high
With $1 bills: 310 ft high
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
11-04-2019, 08:26 AM
|
#17
|
Thinks s/he gets paid by the post
Join Date: May 2016
Location: Mid-Atlantic
Posts: 2,654
|
Quote:
Originally Posted by NW-Bound
Very good point!
So, I recompute, and here are the heights of a pyramid with a side slope of 60 degrees.
With $100 bills: 67 ft high
With $20 bills: 114 ft high
With $1 bills: 310 ft high
|
That's an impressive ziggurat of cash!
__________________
-Looking to FIRE in the mid-2020s, which would be our mid-50s.
|
|
|
11-04-2019, 06:12 PM
|
#18
|
Recycles dryer sheets
Join Date: Sep 2018
Location: Tucson
Posts: 134
|
I’ve been keeping about $180g in cds since 2013 to buy on the dip. I timed it perfect in 2000 but really missed the upside this time.
|
|
|
11-04-2019, 06:27 PM
|
#19
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,415
|
NW-Bound >>> LOL, I like that.
|
|
|
11-04-2019, 06:51 PM
|
#20
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
|
What will be interesting is for us peons to compute what we can do with our stash?
Do we have enough to make a stepping stool like this?
Better build it out of $1 bill or $20 instead of $100 to be safe.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|