Warren Buffett Everest cash Pile hits record, 157 billion dollars amid scarce deals.
Could Warren Buffett Everest cash pile be a contrarian indicator?
The legendary value investor Warren Buffett dislikes too much cash, as he believes all currencies lose value over time.
“The legendary value investor Warren Buffett dislikes too much cash, as he believes all currencies lose value over time”
WEALTH TRAINING COMPANY
Moreover, Warren Buffett is not a great proponent of owning gold.
“I have no views as to where it will be, but the one thing I can tell you is it won’t do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot — and it’s a lot — it’s a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.”
Warren Buffett Everest cash Pile will be seeking assets that provides income, yields, dividends, and rent
If Warren Buffett thinks treasuries are a good deal at current yields, he has enough ammunition and reputation to influence copycat global capital flows into US paper. If that triggers sufficient momentum into treasuries, it could mark the beginning of the end of the worst bear market in treasuries’ 250-year history.
“you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money”
Where will Warren Buffett Everest cash Pile move next, bearing in mind he will not stay in cash forever?
As a famous value investor, we could assume his next big move will be into dividend-yielding value stocks.
Warren Buffett has started buying names like D.R. Horton (NYSE: DHI), a home construction company incorporated in Delaware and headquartered in Arlington, Texas. Since 2002, the company has been the largest homebuilder. No brainer. People are not going to stop needing shelter, and what better time as an investor to backup the truck with depressed construction stocks?
“Whether the currency a century from now is based on gold, seashells, shark teeth, or a piece of paper (as today), people will be willing to exchange a couple of minutes of their daily labour for a Coca-Cola” – Warren Buffett
Smart money starts planting investment seeds in a depression and harvests those profits in a boom.
Could Warren Buffett’s recent investments in home building be a heads up that the central bank tightening cycle is cooked?
Warren Buffett’s recent investment in Lennar (NYSE: LEN), another home construction company underscores his eagerness to invest in construction companies when their stock price is low.
In an inflationary environment, homebuilders are likely to do well. Think commodities, materials that add value.
Warren Buffett Everest cash Pile is likely to flow into value stocks
“Whether the currency a century from now is based on gold, seashells, shark teeth, or a piece of paper (as today), people will be willing to exchange a couple of minutes of their daily labour for a Coca-Cola or some See’s peanut brittle,” Buffett said in his 2011 shareholder letter.
So, is Warren Buffett Everest cash pile an indication of light at the end of a tunnel or the headlights of a locomotive?