Bear Cave 2 (Bull Allowed)

[tsptalk]

As a result, Warren Buffett’s company has raised its cash holdings to the highest level as a percent of assets on record.

It's interesting that, in the chart you posted, they had their biggest net purchasing in early 2022 when that bear market was just getting started.

They don't claim to be market timers, and it eventually worked out, but ouch. They could have waited a while.

 

[robo]

It looks like they have been selling into strength. Not sure what sectors they were buying during that time frame you mentioned, but he still made lots of gains. He bought a tad early during the 2008 Bear too. Right now they are looking at valuations that are very extreme so they are buying T notes, and continue to sell stocks. What is his yearly return with 320 billion of T notes earning around 5%, as they wait for the next correction? He still owns some stocks.... I think they are waiting until PE ratios are back to around 20ish again which is more normal before buying again. I'm sure they will scale in a tad early again knowing that are looking for LT gains. We shall see how it all plays out, and what happens with the tariffs. They must believe the risk/reward is way to high to have an extra 325 billion in stocks.

Have a nice weekend.

Costco with a PE of 60..... Crazy, and very extreme....

https://finance.yahoo.com/quote/COST/key-statistics/