Author Topic: Berkshire A to (gently) hedge against a correction?  (Read 1610 times)

Huffduf41

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Berkshire A to (gently) hedge against a correction?
« on: December 01, 2017, 07:37:44 PM »
Reading about their fairly large cash position made me think about it.  Thoughts?

ILikeDividends

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Re: Berkshire A to (gently) hedge against a correction?
« Reply #1 on: December 01, 2017, 07:58:42 PM »
Reading about their fairly large cash position made me think about it.  Thoughts?

I'm not exactly Johnny-on-the-spot with everything Buffet, but I don't think hedging is his game.  He leans more heavily towards the Benjamin Graham school of value investing.

Here's an article where he made a million dollar bet that he could beat a hedge fund, and he won!

https://www.investopedia.com/articles/investing/030916/buffetts-bet-hedge-funds-year-eight-brka-brkb.asp

He is quoted as saying his favorite holding period is "forever." Nevertheless, he recently sold a pretty big stake in IBM, and possibly hasn't put the proceeds to work yet.  Geez, how bad do you have to screw up for Buffet to sell you, eh?  If he has a higher-than-usual cash allocation, it might be more coincident with higher valuations making it more difficult to find value, rather than overtly hedging.

I don't know what his AA is.  Maybe he's re-balancing, who knows?  If I knew the mind of Buffet, I'd be too busy doing other things, like shopping for a tropical island, to post on this forum.  ;)

« Last Edit: December 01, 2017, 08:39:05 PM by ILikeDividends »

CoffeeR

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Re: Berkshire A to (gently) hedge against a correction?
« Reply #2 on: December 02, 2017, 09:56:03 AM »
Reading about their fairly large cash position made me think about it.  Thoughts?
I could not purchase a lot of brk.a :-)