I’ve been guilty of making money moves based on headlines like this in the past. Every time I landed up losing. Also, when you shift to cash, you will find yourself rooting against the US economy, hoping for a crash. That’s no way to live. Your advice in this video is spot on.
Great video. Thanks for explaining Buffet’s reason for cash. There are so many video’s about his large cash holdings and it was worrying me, but now I understand why. Enjoy all your videos.
What about retirees that are trying to have money left to pass on to children/grandchildren? That needs a more long term approach than someone planning to use all their portfolio during their lifetime.
Retire to something, not from something. Building wealth requires discipline and intention. Develop a routine of regular saving and smart investing to secure your financial future. Start today and shape the life you want tomorrow."
I have never pulled out of the market and I've been through every downturn since 1993. My returns have been good on the way up which is the majority of the time. The hard thing now is that I'm 5 years from retirement and there is inflation... going more conservative doesn't mitigate inflation so I'm doing the 60% equity, 40% fixed portfolio and ABB until I retire.
I generally think the market is overvalued. While I’m not selling, any capital gains and dividends are going into cash right now. I’m still heavily weighted into stocks, but the peace of mind having a bit more on the side is worth any missed gains. That’s pretty much the bucket strategy you mentioned. It works so well. Happy New Year! 🎉
Dave, we might not have exactly the same goals as Warren Buffet, but BRK-B, the class B shares of Berkshire Hathaway, seem to be a pretty good stock (almost like a mutual fund) for long term investors. I realize you won’t make any individual recommendations here, but would you suggest any things to consider when contemplating investing in something like BRK-B?
If you think a bit deeper on this. Having a cash bucket is market timing. You are trying to time a bear market. You have effectively sold your portfolio to that cash value at any point in time. Holding cash is mathematically the same as selling and holding stocks/bonds is the same as buying.
I’m concerned about the indicators though the ones that have never been wrong. However I’m also concerned about buying bonds since when the US defaulted in the 1929 crash, Roosevelt defaulted on paying out gold to domestic bond holders, IOW it’s possible.
Great thoughts! | started investing earlier this year. with a start of 30k. I made my first 100k USD last month. Today, I have a decent $260K nest egg. My only regret is not starting earlier. This comment serves as motivation for all those who haven't made returns from investments, do not give up, the right investments will change your life. I should retire soon as long as things remain this good….
Warren Buffett I would like to request a substantial amount of seed money. Everlasting Love laughing and laughing and laughing and thankful for you staying ahead of this crazy world. 🎉😂
Disagree that going to cash is a vote against the economy It’s taking some profit money off the table and waiting for a new entry point Nothing goes up forever and ever and some correction is inevitable
Warren Buffett once said to treat investing in securities like real estate-you don't constantly check for gains. So, the recent bitcoin price drop doesn't bother me. I keep dollar-cost averaging and adding to my position, and I'm up 200% year-to-date because of this strategy.
Great points to combat the click bait machine, Dave. Time IN the market, not timing the market. Bravo.
I’ve been guilty of making money moves based on headlines like this in the past. Every time I landed up losing. Also, when you shift to cash, you will find yourself rooting against the US economy, hoping for a crash. That’s no way to live. Your advice in this video is spot on.
Thank you!
Great video. Thanks for explaining Buffet’s reason for cash. There are so many video’s about his large cash holdings and it was worrying me, but now I understand why. Enjoy all your videos.
Glad it was helpful!
Yes, I'd love to see your video on risk mitigation.
Happy new year!
It’s like you read my mind. This was so helpful!
Glad it was helpful!
What about retirees that are trying to have money left to pass on to children/grandchildren? That needs a more long term approach than someone planning to use all their portfolio during their lifetime.
Yes, please make the video on major risks in retirement and how to mitigate them.
Thank you for putting me back on track! 😊😊😊
Retire to something, not from something. Building wealth requires discipline and intention. Develop a routine of regular saving and smart investing to secure your financial future. Start today and shape the life you want tomorrow."
The mitigated risk for retirement video would be great!
Thank you for this...!
Nice way to end the year. If you have your own goals and a plan, these headlines are little more than diversions.
Happy New Year everybody
Thanks for this well thought out and referenced discussion.
Yes on the risk video (and how to best mitigate)!
I have never pulled out of the market and I've been through every downturn since 1993. My returns have been good on the way up which is the majority of the time. The hard thing now is that I'm 5 years from retirement and there is inflation... going more conservative doesn't mitigate inflation so I'm doing the 60% equity, 40% fixed portfolio and ABB until I retire.
Excellent episode, reverse engineering a risk-optimized portfolio allocation from the income plan.
Berkshire cash MIGHT be part of a transition plan. Warren's / Berkshire's situation is heavily impacted by life cycle issues.
Amazing video, make perfect sense.
Good video. I'll have to study up on the history chart of the US Bull & Bear Market since 1926. That was interesting.
Yes would love to see retirement risks
Would love a video on retirement risks. Thanks!
I generally think the market is overvalued. While I’m not selling, any capital gains and dividends are going into cash right now. I’m still heavily weighted into stocks, but the peace of mind having a bit more on the side is worth any missed gains. That’s pretty much the bucket strategy you mentioned. It works so well. Happy New Year! 🎉
Excellent analysis
We cannot compare ourselves to him. Geesh!
Dave, we might not have exactly the same goals as Warren Buffet, but BRK-B, the class B shares of Berkshire Hathaway, seem to be a pretty good stock (almost like a mutual fund) for long term investors. I realize you won’t make any individual recommendations here, but would you suggest any things to consider when contemplating investing in something like BRK-B?
yes please!
If you think a bit deeper on this. Having a cash bucket is market timing. You are trying to time a bear market. You have effectively sold your portfolio to that cash value at any point in time. Holding cash is mathematically the same as selling and holding stocks/bonds is the same as buying.
I’m concerned about the indicators though the ones that have never been wrong. However I’m also concerned about buying bonds since when the US defaulted in the 1929 crash, Roosevelt defaulted on paying out gold to domestic bond holders, IOW it’s possible.
Great thoughts! | started investing earlier this year. with a start of 30k. I made my first 100k USD last month. Today, I have a decent $260K nest egg. My only regret is not starting earlier. This comment serves as motivation for all those who haven't made returns from investments, do not give up, the right investments will change your life. I should retire soon as long as things remain this good….
The last time he did this the market was already tanking like it is now. The crash was two years long.
Yes
Buffett's strategy makes sense for Berkshire, but can we really apply the same thinking to our 401ks? 🤷♂
BRK is in a unique league. I invest with expectation of the next gov’t or financial debacle. 😂😊
He sat on the sidelines while the market hit all time highs.
Went to cash at the top. I’ll jump back in at the bottom.
Good luck knowing when that is.
Warren Buffett I would like to request a substantial amount of seed money. Everlasting Love laughing and laughing and laughing and thankful for you staying ahead of this crazy world. 🎉😂
Every bull market people are predicting a bear market.
Retirement risk
Disagree that going to cash is a vote against the economy It’s taking some profit money off the table and waiting for a new entry point Nothing goes up forever and ever and some correction is inevitable
Nobody saying it, but could also be a bit of lost mojo since Warren lost his forever Hathaway buddy, Charlie.
Buffet did sell billions of stock BUT he just bought billions more of under valued stocks !
Hes losing about 5.5billion a year at a 2% loss through inflation.
And i would think its more like 5%
Buffett has been heavy CASH for ten years now. He's been waiting for the crash for a while.
Look at the graph it is skyrocketing as he exits Apple and other overvalued companies
The older you get the faster time passes subjectively. Probably feels short to him.
Warren Buffett once said to treat investing in securities like real estate-you don't constantly check for gains.
So, the recent bitcoin price drop doesn't bother me. I keep dollar-cost averaging and adding to my position, and I'm up 200% year-to-date because of this strategy.
In a crazy world, we have a voice of reason. 🫡🫡🫡