No. of Recommendations: 3
Berkshire down 3.34% pre market is interesting. The YTD flight to the safety of Berkshire happened.
Sell Berkshire, with its relative tariff resilience and cash position, is a sign of growing fear. VIX now up 125% YTD.
We may only be 10% into the kind of disruption that would cause Buffett to phone his broker.
The counter tariff measures from Canada and now China is shaking confidence. Next up EU. Then we have Q2 reporting seriously weakened numbers later in the year. It could be an interesting summer and autumn.
I’m going to spend the next week reading financial statements and making sure I have the latest information on my investments. I might start to think about a mechanical approach to allocating cash. Research to build conviction.
What are your signs to get back into equities? Buffett buying would be an early sign. Defensive Berkshire down 50% would be interesting. Seems quite unlikely. But then again, when you consider how complex a challenge, it will be for companies to perform the kind of miracles being asked of them to bring manufacturing back to America. It does look like a policy mistake from above. The distribution will be incredible. And that’s just one of the problems the world now faces. Uncertainty creates fear and it looks grim for the foreseeable.
Keeping the vision of the late Charlie Munger, pulling his car over to phone his broker and going all in on Wells Fargo for DJCO at $9 per share, having patiently waited in cash for multiple years.
