Something to learn from great value investor. Sold 8 stocks and bought 2 stocks. Has sold off most of its holdings in semicondutor(TSM), cut its investment in U.S. Bancop(USB) by 91% and in Bank of New york Mellon(B) by 56%. https://www.kiplinger.com/investing/...ng-and-selling
He did well to cut the banking stocks but TSM is up around 10% on average since Q4.
I wouldn't be surprised if he's cashing up a bit to buy into various stocks at lower levels.
Suppose many different interpretations of this chart
@TaviCosta on Twitter says -
As shown in the chart below, the ratio between tech stocks and the S&P 500 is now over 2 standard deviations above the historical mean.
During other times when this indicator also reached such high levels, the tech sector significantly underperformed in the following decade.
It's unlikely that this time will be any different.
Looking back as a predictor of the future is a dangerous game in my view, particularly when it comes to the tech space. Always going to be high risk & volatile are but over time tech is going to grow to be part of all areas of the market with the development of AI, nano bots, advances in medicine etc. The list is endless. My prediction a few years ago is the NASDQ will be higher than the DOW at some point.
Looking back as a predictor of the future is a dangerous game in my view, particularly when it comes to the tech space. Always going to be high risk & volatile are but over time tech is going to grow to be part of all areas of the market with the development of AI, nano bots, advances in medicine etc. The list is endless. My prediction a few years ago is the NASDQ will be higher than the DOW at some point.
I am not saying it's all doom and gloom. But things go in cycles. Because of the higher finance rate, companies that are not generating a profit or adequate return will be punished more. Typically those are the tech stocks. Hence the volatility.
You can see it, companies are not pursuing growth and focusing on improving margin. I am starting to see evidence of standardising of goods and services across different industries.
No doubt innovation will continue. But at the moment companies arent prepared to support these endeavours at the same level as previously.
At some point tech will outperform in the future. The question is when.
Something to learn from great value investor. Sold 8 stocks and bought 2 stocks. Has sold off most of its holdings in semicondutor(TSM), cut its investment in U.S. Bancop(USB) by 91% and in Bank of New york Mellon(B) by 56%. https://www.kiplinger.com/investing/...ng-and-selling
"Berkshire Hathaway Chairman and billionaire value investor Warren Buffett said that the conglomerate has sold the entirety of its equity position in the U.S. airline industry. The prior stake, worth north of $4 billion in December, included positions in United , American , Southwest and Delta Air Lines .2/05/2020"
"Why did Buffett sell airline stocks?
But last spring, the Omaha-based conglomerate sold these holdings for far less than the $7 billion to $8 billion it had paid for them, and Buffett called his decision to invest in air travel a “mistake,” arguing it could take years for airlines to fully recover from Covid-19.1/05/2021"
Buffett said that investing in air travel was a mistake. I would also add that divesting his air travel stocks was a huge mistake at the covid pivot point. One year later airlines had tripled in value. From that you can conclude that investors and instos don't follow Warren to the letter
I am not saying it's all doom and gloom. But things go in cycles. Because of the higher finance rate, companies that are not generating a profit or adequate return will be punished more. Typically those are the tech stocks. Hence the volatility.
You can see it, companies are not pursuing growth and focusing on improving margin. I am starting to see evidence of standardising of goods and services across different industries.
No doubt innovation will continue. But at the moment companies arent prepared to support these endeavours at the same level as previously.
At some point tech will outperform in the future. The question is when.
Originally Posted by Habits
"Berkshire Hathaway Chairman and billionaire value investor Warren Buffett said that the conglomerate has sold the entirety of its equity position in the U.S. airline industry. The prior stake, worth north of $4 billion in December, included positions in United , American , Southwest and Delta Air Lines .2/05/2020"
"Why did Buffett sell airline stocks?
But last spring, the Omaha-based conglomerate sold these holdings for far less than the $7 billion to $8 billion it had paid for them, and Buffett called his decision to invest in air travel a “mistake,” arguing it could take years for airlines to fully recover from Covid-19.1/05/2021"
Buffett said that investing in air travel was a mistake. I would also add that divesting his air travel stocks was a huge mistake at the covid pivot point. One year later airlines had tripled in value. From that you can conclude that investors and instos don't follow Warren to the letter
Yep fair points. Tech reminds me of the mining industry, where you have the explorers & the producers.
"Berkshire Hathaway Chairman and billionaire value investor Warren Buffett said that the conglomerate has sold the entirety of its equity position in the U.S. airline industry. The prior stake, worth north of $4 billion in December, included positions in United , American , Southwest and Delta Air Lines .2/05/2020"
"Why did Buffett sell airline stocks?
But last spring, the Omaha-based conglomerate sold these holdings for far less than the $7 billion to $8 billion it had paid for them, and Buffett called his decision to invest in air travel a “mistake,” arguing it could take years for airlines to fully recover from Covid-19.1/05/2021"
Buffett said that investing in air travel was a mistake. I would also add that divesting his air travel stocks was a huge mistake at the covid pivot point. One year later airlines had tripled in value. From that you can conclude that investors and instos don't follow Warren to the letter
Not at all.
Process vs Outcome.
Be extremely worth your while spending a whole day studying this move alone, read all the transcripts and the 10Q's and the K.
Then write an essay with your findings, will improve you massively as an investor.
With this logic it was a massive mistake not to have bought ****coin and in hindsight it was.
buffett admitting their earnings are likely to decline going forward
selling way more stocks first quarter than buying ie building up there cash position
which all makes sense
here's a shortened take of a good interview by daiio on what he thinks is a head too
Ray Dalio's Warning for The U.S. Economy and The Coming Crisis
Reply With Quote
Originally Posted by winner69
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