No. of Recommendations: 1
Same, we could be 250bn in cash by the end of the year earning 5.5% and waiting for a few good opportunities around the corner (looking to deploy say 25-30bn at a time) into US large caps.
Why Apple..?
*Decline in fundamentals.
*Perceived geopolitical risk, he clearly is not a fan of China vs Charlie
*Big run up and current valuation.
*Low future returns over the next 3 years, (compared to the 5.5% on cash)
*Opportunity to redeploy and buy in a downturn, Apple is a big chunk @ 50% of portfolio.
Look at the Buffett indicator.linked below. (Strongly Overvalued)
currentmarketvaluation.com - Buffett indicator.
When you look at all the above it's just common sense really isn't it?
