"Ugly Prices"
by Bill Bonner
Baltimore, Maryland - "Warren Buffett, as far as we know, is not a regular reader of these posts. But in the news is word that Warren Buffett is pulling out of stocks, The Economic Times: ‘Warren Buffett’s Berkshire Hathaway cash pile hits record $381.7 billion - the biggest corporate war chest in U.S. history.’
That’s an increase of about $200 billion more cash in the last three years. Today, Berkshire has about a third of its money in cash. That is to say, it is ‘long stocks’ on only two thirds of its portfolio. Asked why he has so much cash, Buffett explained: ‘We’d love to spend it [cash], but we won’t spend it unless we think we’re doing something that has very little risk and can make us a lot of money. We only swing at pitches we like. It isn’t like I’ve got a hunger strike or something like that going on. It’s just that things aren’t attractive.’
What? Has the poor geezer never heard of AI? Didn’t he know that Friday was a great time to ‘buy the dip?’ Came this headline early Friday morning. Fast Company: "Hot tech stocks are tumbling: Why Tesla, Palantir, Nvidia, and others are leading a market sell-off today."
The Wall Street Journal piled on…"Investors Dump Tech Shares as Shutdown Relief Evaporates." But wait. The press had jumped the gun. The Wall Street Journal describes what happened next:
"After the opening bell rang in New York Friday, shares in Nvidia, Oracle and other companies at the heart of the artificial-intelligence boom careened low enough to flash a green light for dip-buyers. Stocks quickly pared much of their losses, clawing back enough ground for major indexes to finish the week mixed." Yes, the dip buyers saved the day. What to do? Buy the dip? Or get out? There are a lot of people who believe you should stay fully invested in stocks all the time."
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