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Berkshire has about $72 billion in cash and cash equivalents. They also have $305 billion in U.S. Treasury bills and $5 billion in U.S. Treasury, U.S. government corporations and agencies to round out the dry powder available.
Which is slightly more than Home Depot has, but less than Palantir, Netflix and Costco.
They still have $283 billion invested in stocks.
This was a good look into the mind of Buffett and Munger
Berkshire has about $72 billion in cash and cash equivalents. They also have $305 billion in U.S. Treasury bills and $5 billion in U.S. Treasury, U.S. government corporations and agencies to round out the dry powder available.
Which is slightly more than Home Depot has, but less than Palantir, Netflix and Costco.
They still have $283 billion invested in stocks.
This was a good look into the mind of Buffett and Munger
Context? It’s what happened. He’s sitting on 380 billion in cash.
Berkshire lost money on their Treasury bond purchases last few weeks. The oracle must have lost the touch. He had recommended Celanese, and that stock has taken a total bath also. Not sure there's been a lot in the way of outstanding buys, but he did sell off a majority stakeholder share if Apple - which has been on a tear lately. All in all Berkshire has lost its luster
A Monetary Earthquake:
China’s Unreported Gold Purchases Could Be 10× Its Official Total, According to the Financial Times.
Dr. Judy Shelton recently told me something that the world should play close attention too.
China, the world’s largest producer and consumer of gold, is almost certainly not being transparent about how much it really holds.
Through the Shanghai Gold Exchange, Beijing has quietly built the infrastructure to merge gold and the yuan — setting the stage for settlement through digital instruments or stablecoins.
She warned that China may soon propose a new international monetary system anchored to gold… a move that could redefine global finance. @judyshel
Berkshire lost money on their Treasury bond purchases last few weeks. The oracle must have lost the touch. He had recommended Celanese, and that stock has taken a total bath also. Not sure there's been a lot in the way of outstanding buys, but he did sell off a majority stakeholder share if Apple - which has been on a tear lately. All in all Berkshire has lost its luster
Well, he was stepping down and liquidating. Funding his children's foundations and handing over Berkshire to others
Well, he was stepping down and liquidating. Funding his children's foundations and handing over Berkshire to others
True, but he could have transferred assets in kind to those foundations vs cash out. Unless the need for declaration of gains and losses were tax oriented incentives. Hard to know but he sold a lot of losers either way, and lost out of a lot of gains. I'm sure it was done w good advice, but it doesn't bode well for the Berkshire namesake and valuations.
Fed Reserve just pumped $13.5 Billion into the U.S. Banking System through overnight repos �� This is the 2nd largest liquidity injection since Covid and surpasses even the peak of the Dot Com Bubble �� Probably Fine, carry on
The Fed Just Quietly Accepted $25 BILLION in Overnight Repo… and Nobody’s Talking About It
Most people don’t understand what they’re looking at here, so let me break it down in simple terms:
This chart shows banks scrambling for short-term liquidity.
They submitted $25B in Treasury + Mortgage-Backed collateral…
And the Fed accepted all of it.
His final investor letter contained one sentence that should terrify every fund manager, central banker, and policymaker on Earth:
“My estimation of value in securities is not now, and has not been for some time, in sync with the markets.”
This is not a crash prediction.
This is a death certificate.
THE NUMBERS NOBODY WILL TELL YOU
Passive index funds now control 52% of all U.S. fund assets. Fifteen point four trillion dollars. BlackRock, Vanguard, and State Street collectively manage twenty five trillion. They own dominant stakes in virtually every public company in America.
They analyze nothing.
Every dollar flowing into an S&P 500 ETF automatically allocates thirty five cents to seven stocks. Not because someone studied the balance sheets. Because that is their index weight. The algorithm cannot read an earnings report. The algorithm cannot process overvaluation. The algorithm simply replicates.
THE DEATH SPIRAL
Passive buying increases prices. Higher prices increase index weights. Higher weights attract more passive buying. The feedback loop operates completely independent of whether any business is worth what the market claims.
The marginal buyer of American equities is no longer an analyst with conviction.
It is a target date fund receiving its biweekly paycheck allocation.
This buyer has no opinion.
This buyer will never sell.
THE CONSEQUENCE
Price discovery, the mechanism that has allocated capital for two centuries, has been structurally disabled.
The most successful short seller in modern history looked at these numbers and concluded that fundamental analysis no longer converts to returns.
Michael Burry has said he’s expecting a prolonged market-wide selloff that’s worse than 2000, which lasted 31 months.
“I think when the market goes down, it's not like in two thousand where there was this other bunch of stocks that were being ignored and they'll come up even if the Nasdaq crashes. Now I think the whole thing's just going to come down," he said.
