In their 90s and still kicking. Buffett and Munger gave their best “I told you so” talks at Berkshire Hathaway’s annual shareholders meeting this weekend.
Buying the dip? Berkshire scooped up $51.1 billion of US stocks during the market sell-off in Q1.
Follow the money: Here's what they're buying…
- Bullish on energy. Added a big stake in Occidental Petroleum $OXY and doubling down on Chevron $CVX (Berkshire-Hathaway's fourth-largest holding).
- And video games (?) Berkshire-Hathaway is now the largest shareholder of Activision Blizzard $ATVI with a 9.5% stake with their MSFT merger arbitrage bet.
What they're saying: Grandpa Buffett doesn't look kindly upon WSB style investing. Saying that the influx of new traders during the pandemic has turned the market into “almost totally a casino” in which large American companies have become “poker chips.” Grandpa Munger also lashed out at Robinhood for promoting the gambling dynamic. Re: $HOOD's 86% plunge from its peak, “God is getting just.”
My play: Between aggressive risky investing and your slow but safe Buffett approach is defined outcome investing. The controlled sweet spot between growth and stability.
I have a credit spread on $OXY that makes up to 16% annualized with 46% cushion ($29.83 breakeven) expiring 11/18/2022
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