OT: Stock and Investment Talk

[rutgersdave]

5%? Not even close. It's down like 2% and was at a new ATH like 15 minutes ago (Wed to be exact). One rough day due to an iffy consumer sentiment poll that doesn't reflect our nicely growing economy. So, emotion over reality. We've had a bunch of deep red days over the past several months and quickly bounced back.

A temporary correction will happen sooner or later. I don't think the August Japan Carry Trade dump got there. Maybe the last correction was fall of 2023? Not sure. Need to look that up. I believe we get a 10% correction every 2 years on average.

Yes, the market is less than 5%. One reason I generally don’t like mutual funds/ETF but I have some because I like to take a rest from the market sometimes. Individual stocks that I look at are down at least 10% and like it better at 15-20% down. I am anxiously awaiting the temp correction. Trump causes a lot more fluctuations and 10-20% ain’t large for him.

 

[rutgersguy1]

IMO the biggest takeaway from him is the “be fearful when others are greedy and greedy when others are fearful,” ….everyone knows that quote but when the time comes and push comes to shove how many actually step in versus being paralyzed and scared.

He sits on tons of cash if he doesn’t see anything worthwhile to deploy it on.

https://www.cnbc.com/2025/02/22/warren-buffett-amasses-more-cash-and-sells-more-stock-but-doesnt-explain-why-in-annual-letter.html

Often, nothing looks compelling’​

Buffett’s sitting on his hands amid a raging bull market that’s seen the S&P 500 gain more than 20% for two years in a row and move into the green again so far this year. Some cracks have begun to develop in the past week, however, with some concerns growing about a slowing economy, volatility from rapid policy changes from new President Donald Trump and overall stock valuations.
Berkshire shares were up 25% and 16% respectively the last two years and are up 5% so far this year.
Buffett did offer perhaps a small hint about stock valuations being a concern in the letter.
“We are impartial in our choice of equity vehicles, investing in either variety based upon where we can best deploy your (and my family’s) savings,” wrote Buffett. “Often, nothing looks compelling; very infrequently we find ourselves knee-deep in opportunities.”

 

[T2Kplus20]

https://www.cnbc.com/2025/02/22/warren-buffett-amasses-more-cash-and-sells-more-stock-but-doesnt-explain-why-in-annual-letter.html

Often, nothing looks compelling’​

Buffett’s sitting on his hands amid a raging bull market that’s seen the S&P 500 gain more than 20% for two years in a row and move into the green again so far this year. Some cracks have begun to develop in the past week, however, with some concerns growing about a slowing economy, volatility from rapid policy changes from new President Donald Trump and overall stock valuations.
Berkshire shares were up 25% and 16% respectively the last two years and are up 5% so far this year.
Buffett did offer perhaps a small hint about stock valuations being a concern in the letter.
“We are impartial in our choice of equity vehicles, investing in either variety based upon where we can best deploy your (and my family’s) savings,” wrote Buffett. “Often, nothing looks compelling; very infrequently we find ourselves knee-deep in opportunities.”

Buffett's cash reserve is a fallacy. Based on BRK's market cap, the % cash on hand is well within norms of the past several decades.

 

[RUAldo]

Buffett's cash reserve is a fallacy. Based on BRK's market cap, the % cash on hand is well within norms of the past several decades.

When you amass that much cash you can afford to wait around.