Why Warren Buffett Does Not Trade Commodities

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  • Опубліковано 17 жов 2020

КОМЕНТАРІ • 134

  • @tbates757
    @tbates757 9 місяців тому +24

    It’s amazing that you can ask Warren Buffett just about any question and he has an extreme depth of knowledge about it.

  • @spiroclimb2523
    @spiroclimb2523 Рік тому +22

    The problem with oil it's too politicized. Anything or anyone or any country can screw with it.

  • @kingkang6877
    @kingkang6877 3 роки тому +63

    That was some self-aggrandizing comment/question

  • @wilfriedvomacka1783
    @wilfriedvomacka1783 10 місяців тому +21

    She went to Berkshire shareholder meeting to ask a question about trading oil?! 🤦‍♂️

  • @ralphpeterson6806
    @ralphpeterson6806 2 роки тому +54

    Interesting content, videos like this and insight from an expert goes a long way.

    • @finntomkins6825
      @finntomkins6825 2 роки тому +2

      Couldn't agree more, their insight helps, that's why I am now being coached by one, Edwin Earl.

    • @ethangavin5348
      @ethangavin5348 2 роки тому +1

      @@finntomkins6825 hello Finn, can you link me to one? i have seen some of the benefits and i would also like some assistance.

    • @finntomkins6825
      @finntomkins6825 2 роки тому +6

      INVESTWITHEARL

    • @finntomkins6825
      @finntomkins6825 2 роки тому +2

      on telegram

  • @leswhynin913
    @leswhynin913 11 місяців тому +45

    I don't understand why someone would ask this question at a Berkshire meeting. It's like bragging about gambling winnings

    • @haventsleptyet
      @haventsleptyet 11 місяців тому +5

      Bragging to someone worth a million times more than you 😂....maybe she wanted sympathy

    • @haventsleptyet
      @haventsleptyet 11 місяців тому +7

      Oh and ppl who talk about big gambling winnings usually aren't bragging. Theyre re-living the most exhilarating moments of when they got the highest dose of gambler's "high", and they remember every last detail bc it was euphoric

    • @Wasnt-1
      @Wasnt-1 9 місяців тому +4

      nah what she means is she makes decent money with commodities so why hasn't berkshire invest on it like she does

    • @trader-matt
      @trader-matt 9 місяців тому +1

      Broke people be like

    • @EffySalcedo
      @EffySalcedo 6 місяців тому

      Could it be that an individual justifies gambling personal winnings because others are so much richer One should be richer too by any means.

  • @paulrath7764
    @paulrath7764 2 роки тому +42

    In the last 2 years, Buffett has had positions in Chevron and Barrick Gold, and from his comments, he clearly knows a lot about oil production and drilling.

    • @ralphkhattar8964
      @ralphkhattar8964  2 роки тому +5

      The Barrick Gold position is unlikely to be his. But fair point on Chevron/Oxy, he does have a LT view on oil that it's going to go up over time

    • @martinsl1979
      @martinsl1979 2 роки тому

      @@ralphkhattar8964 well. It was put out publically that BRK bought into Barrick Goldcorp.

    • @ralphkhattar8964
      @ralphkhattar8964  2 роки тому +5

      @@martinsl1979 Yes, that's correct. Berkshire bought into Barrick for a quarter (and sold it a quarter or so later). But that purchase is unlikely to be Warren's. It most likely was made by one of Warren's 2 investment lieutenants: Todd Combs & Ted Weschler

    • @majda926
      @majda926 11 місяців тому +11

      Equity in oil companies is not commodity trading

    • @beethao9380
      @beethao9380 10 місяців тому

      @@majda926exactly. And he most likely bought it for the dividends. This is why I don't take advice from people on the internet because they don't know what they're talking about and only repeat what they've read online. Investing in stocks is easy. The false hope/wishful thinking is what gets people. "to the moon." "bullish," "bearish," etc. Just buy a good company at a good price and see your returns multiply.

  • @ethangroat8333
    @ethangroat8333 10 місяців тому +22

    People with an edge in commodities are people with a very very good understanding of economics and a lot of information about the markets, and can get in and out fast. People with an edge in stocks know that the company makes good products and has good management, and only needs to know maybe a little bit of economics. When you trade commodities, you ARE the company, you don't only own the company. It's a lot of work, but worthwhile if you really do have an edge.

    • @vishalkhanna1476
      @vishalkhanna1476 9 місяців тому +1

      Is NATURAL GAS AN 3 EXCELLENT BUY FIR THT $5

    • @D20034
      @D20034 4 місяці тому +1

      @@vishalkhanna1476why are you typing in all capital letters? 😂

  • @elgatomoscato230
    @elgatomoscato230 11 місяців тому +4

    I think the short answer is to keep your current holdings and deleverage based on innovation that reduces oil dependency. If production is the same or higher and inflation is consistent, hold until that changes

  • @TheWeeklyCommodity
    @TheWeeklyCommodity 3 місяці тому +3

    Well one hand it's just common sense like how he put it "Physical resources are finite" so it doesn't really matter the commodity is if you go long and you did so a few years ago you'd be a billionaire today.. Look at cocoa, cotton, oil, gold, silver etc they all have gone up. So if you bought low and early enough, then you couldn't go wrong if you tried.

  • @larryhorowitz6690
    @larryhorowitz6690 11 місяців тому +9

    When considering an asset for investment, it makes some sense to zoom out and look at a long-term price chart. If the asset just goes up and down, it may take significant skill to make money trading it, and not be sensible to buy and hold the asset. If the asset goes up over long periods of time, like stock indices tend to do, buying may be more sensible, and you can trade around a core position if you are skillful.

  • @beetfarmlabs6724
    @beetfarmlabs6724 Рік тому +15

    Buffett wasn't known for being a trader, he is an investor. I doubt she is making money in oil by buying and holding.

    • @trader-matt
      @trader-matt 9 місяців тому

      If you don't know the answer just say that like buffett did. Crude oil is the most liquidity commodity

    • @Isaacaijazebf2j
      @Isaacaijazebf2j Місяць тому

      @@trader-mattlmao it is the most liquid commodity but only physically if you own oil wells or setup a gas station not the other ways from stock market of commodities you will never ever benefit like that 😂!

  • @crushingthegame
    @crushingthegame Місяць тому +1

    there was never was, never has been and never will be a shortage of oil. It's a natural earth process and will never stop.

  • @tomdallas3690
    @tomdallas3690 Рік тому +14

    What Buffett never tells the public is that inflation is great for Berkshie Hathaway. Constantly churning profitable dollars day in and day out, decade after decade, with large inflation, is where the money is. He would never say it that way, but it has to be true. Munger once talked about inflation and mentioned an inflationary figure over the last 50 years or so, and said something to the effect of....has inflation been bad for investing/Berkshire Hathaway? I think not. Buffett loves money printing because he will outrun it by a few percent a year in the long run.

    • @MikeG33113
      @MikeG33113 11 місяців тому

      How does he out run it?
      By charging more for products than the inflation rate moves?

    • @apollocreed1000
      @apollocreed1000 10 місяців тому

      ​@@MikeG33113He buys companies with strong pricing power so they can always raise prices ahead of inflation.

    • @pinkpanther6228
      @pinkpanther6228 3 місяці тому

      @@apollocreed1000 what a load of crap

  • @Fabzil
    @Fabzil 27 днів тому

    Last quote xD

  • @larryclark6212
    @larryclark6212 2 роки тому +14

    A very smart man when it comes to finance. I need to listen to him more. 😎

  • @georgewilliam1736
    @georgewilliam1736 11 місяців тому

    There is a time for everything he took a position on Silver as well and they admitted to trading in the 90s .

  • @jumbojet8
    @jumbojet8 10 місяців тому +3

    "And your Dollar Aint Shit" - Oliver Anthony

  • @D.ManuelIBoss
    @D.ManuelIBoss 2 роки тому +4

    Well he's got a point, but maybe in this particular time, commodities can be (just a thought) a good idea, what you guys think?

    • @morehn
      @morehn 2 роки тому

      I've dumped my life's savings in commodities right now and out of the general market

    • @D.ManuelIBoss
      @D.ManuelIBoss 2 роки тому +8

      @@morehn Are you sure that dumping your life savings in that (actually in anything) is a good idea?

    • @morehn
      @morehn 2 роки тому

      @@D.ManuelIBoss I diversified among a few sectors, but mostly commodities.
      I'm most heavily in commodities, then healthcare, materials, real estate, staples/defensive, utilities, and energy.
      I believe the commodities and natural resources will be my strongest player, but I spread the risk.
      Definitely out of tech and the general market, almost entirely.

    • @unknownbear9811
      @unknownbear9811 2 роки тому

      @@morehn ur an idiot if u actually put all your life savings in commodities

    • @mou1394
      @mou1394 2 роки тому +1

      @@morehn i just bought a larry williams booka cause I think its a good opportunity for trade commodities

  • @fabianaltendorfer11
    @fabianaltendorfer11 3 роки тому +4

    Whats the date of this footage?

  • @Eric3Frog
    @Eric3Frog 18 днів тому

    There are more inefficiencies to take advantage of in the equities market versus commodities.

  • @tristan5951
    @tristan5951 Місяць тому

    i know a lot of people who make great money in oil but theyre just good traders who can make good money in any market

  • @Navak_
    @Navak_ 2 місяці тому +1

    he says it's too hard to predict commodity prices. i dunno man, sure it's hard to predict whether a resource will go up or down but at least i can understand its usefulness and therefore its demand. compare that to, say, a tech company. what do i really understand about how this tech company makes its money? how can i really claim to understand its usefulness? to me commodities seem far less opaque than tech stocks

  • @sspctm
    @sspctm Рік тому

    4:48 inflation hellooo 2023

  • @Unknowledgeable1
    @Unknowledgeable1 Рік тому +1

    4:53

  • @boaznood1682
    @boaznood1682 6 місяців тому +1

    Dollar is history.

  • @SilentCheechGaming1991
    @SilentCheechGaming1991 11 місяців тому +1

    So no frozen orange juice?

  • @tarikyasargun4582
    @tarikyasargun4582 Рік тому +1

    So what was the conclusion?

    • @TankDerek
      @TankDerek 11 місяців тому

      If you want to make money in the oil commodities market, bribe Nigeria

  • @davidg.2217
    @davidg.2217 2 роки тому +5

    TWO SMARTEST GUYS IN THE 🌎 WORLD...👍

  • @Marmullak_es
    @Marmullak_es Рік тому +1

    The look on her face when oil went to zero 😂

  • @vishalkhanna1476
    @vishalkhanna1476 9 місяців тому

    Is NATURAL GAS AN 3 EXCELLENT BUY FIR THT $5

  • @hkmorhsi
    @hkmorhsi 3 місяці тому

    People always try to "man him up" or have some type of ego battle. How is it not clear that Buffet and Charlie like easy and reliable investments? It's not like they take themselves as seriously and as authorities.

  • @GoldBureau
    @GoldBureau Рік тому +5

    He likes to own businesses simple as that

  • @TUZKGaming
    @TUZKGaming Рік тому +1

    just roasted her with his first line

  • @goneviral8814
    @goneviral8814 Рік тому +1

    When was this meeting?? That's the real question

  • @JcarlosDnava
    @JcarlosDnava Місяць тому

    Ches moving like at tortuga up

  • @mm-du6xq
    @mm-du6xq 2 роки тому +17

    Man, Charlie is already on a Zoom call with God...

    • @Ricobaca
      @Ricobaca Рік тому +6

      100 years old in January. 😊

  • @Angelthedog
    @Angelthedog 10 місяців тому +3

    This gal's a gambler (and a bit self-congratulatory), not an investor.

  • @TheSmoothkriminal
    @TheSmoothkriminal Рік тому +1

    Oil is here...aint going no where

  • @user-cw8vt3zc8t
    @user-cw8vt3zc8t 9 місяців тому

    shit, he might live to 120 - he speaks eloquently and quickly

  • @hawks9142
    @hawks9142 2 роки тому +3

    They saw A DIME A BARRELL, that's insane. What is this 2020? 😄

    • @ricgunn1439
      @ricgunn1439 Рік тому

      Hit negative during COVID💀😡

    • @phumkhmertv2028
      @phumkhmertv2028 10 місяців тому

      Warrren didn't have the gut to went to buy big on oil futures on that negative oil day
      @@ricgunn1439

  • @nhanha7433
    @nhanha7433 2 роки тому +1

    Now if you look for safety to boom. You know who to select to join do not you.

  • @Qrec12
    @Qrec12 2 роки тому +14

    And now he’s investing heavy into oil. I hope the girl who asked the question held on to her oil and commodity positions.

  • @nhanha7433
    @nhanha7433 2 роки тому +3

    That the reason after biodiesel. We see it is not working for mass economy. We work on wind generator and solar panel. And cut back oil consumption. But we still fail on weather and virus.

  • @smuzzgulp3187
    @smuzzgulp3187 10 місяців тому +1

    JUST TRADE IN KIDS WITH EPSTEIN 🤷‍♂️

  • @projectfang9130
    @projectfang9130 3 місяці тому

    The 2 old guys from the Muppets?

  • @sliceofpi6935
    @sliceofpi6935 2 роки тому +1

    Went from oil to US dollar to companies to intellect

  • @Dave-ji1yp
    @Dave-ji1yp 11 місяців тому

    2 SMARTEST GUYS IN THE WORLD. BEING NICE TO THE LADY TELLING HER HER INVESTMENTS IN OIL COMMODITIES NOT THAT GREAT...👍👍

  • @lukemckee9772
    @lukemckee9772 2 роки тому +26

    Aged like milk

  • @trader-matt
    @trader-matt 9 місяців тому

    The short answer is he doesn't know about Crude oil

  • @nhanha7433
    @nhanha7433 2 роки тому

    His home was not in Louisiana state.

  • @raindogs451
    @raindogs451 10 місяців тому

    I cannot watch anymore of this. The BH shareholder wants to stroke their ego in public. Every question is 8 minutes

  • @miloshp7399
    @miloshp7399 11 місяців тому

    Draaaainage

  • @nhanha7433
    @nhanha7433 2 роки тому +2

    When it mess up his state business and his home. He will think differently

  • @vandrex01
    @vandrex01 Рік тому

    WHEN MAKING RETIREMENT PLANS, COMMODITY IS GOOD BUT HAVING PASSIVE INCOME IS MORE CRUCIAL. Big ups to everyone working effortlessly trying to earn a living while building wealth. I'm 40 oand my wife 34. We are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle made it possible for us this early even till now we earn monthly through passive income.

    • @vicvic1595
      @vicvic1595 11 місяців тому +1

      Please do you have any tips for me that I can use to grow my money as well?

    • @MikeG33113
      @MikeG33113 11 місяців тому +1

      Jesus! What jobs did you have? 😂

  • @tonypastrami3071
    @tonypastrami3071 5 місяців тому

    Buffet is a Mason I’m sure. Never gonna give you the answers. Never gonna teach it at school. If he says don’t trade com. Trade them haha

    • @McFlashh
      @McFlashh 4 місяці тому

      It’s because Berkshire Hathaway only invests in stocks, yet it’s very successful and profitable. Commodity doesn’t have as much profit as stocks.

  • @ketchyshubby
    @ketchyshubby Рік тому +4

    Warren gets away with his traditional view on investment thanks to the grandfatherly persona he's developed. Charlie on the other hand always seems like he's talking down to you, and comes off as an asshole.

  • @nhanha7433
    @nhanha7433 2 роки тому +1

    Any thing with his name stay away.

    • @blickymo0212
      @blickymo0212 2 роки тому +5

      Even investing in s&p 500 long term?

  • @JohnDoe-oo9ll
    @JohnDoe-oo9ll 2 роки тому +6

    Mr. Buffett needs to drink more water; irritating to hear him smacking while he speaks

  • @dp622
    @dp622 11 місяців тому +1

    Humpty dumpty sat on a wall. Humpty dumpty had a great fall.

  • @rickystickyicky7587
    @rickystickyicky7587 3 місяці тому

    This is dumb, buffet and Berkshire just bought a commodity company a few weeks ago 🤣