One of the guiding principles of legendary investor Warren Buffet is that cash is king. One trade anticipates seeing a recession in the US soon.
Warren Buffett
Warren BuffettPresident of Berkshire Hathaway, He is considered one of the most listened to investment gurus in the world of finance. So much so that he has earned the nickname of “Oracle of Omaha” after his successes. Now he made a play that turned on red flags.
At the company’s last shareholders’ meeting, Warren Buffett revealed that the group has sold shares worth 13.3 billion dollars and, at the same time, invested 4.4 billion in the repurchase of its own shares and placed another 2.9 billion in other securities.
“Warren Buffett’s sale of billions of dollars in US stocks indicates that he correctly anticipates that a recession in the United States will arrive in the near future“, says Steve H. Hanke, professor of applied economics at Johns Hopkins University in statements made to Newsweek.
One of the guiding principles of legendary investor Warren Buffet is that cash is king. So, for the academic, the operation of Berkshire Hathaway is because he perceives that “economic activity will worsen.”
David Nicholas, president and founder of Nicholas Wealth Management, recalls that “the three big risks for Buffett are China, the US banking sector and real estate. These are very real risks to economic growth and just one would be enough. to derail growth, but we are dealing with all three at the same time,” Nicholas told Newsweek.
Berkshire invests most of its $130.6 billion of cash in Treasury bills and short-term bank deposits, a sign the company has benefited from higher interest rates imposed by the US Federal Reserve.
Source: Ambito
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