In this video, I discuss how Warren Buffett has been a net seller of stocks in 2020; and I speculate that Buffett may be considering various commodities and precious metals (like silver and crude oil) as hedges against excessive central bank money printing.
Buffett has a history of owning silver, including in the late 1960's as a hedge against the U.S. leaving the gold standard, as well as 1997-2006 when U.S. stocks were overvalued.
Buffett has repeatedly bad-mouthed both gold and Bitcoin, so silver seems like the natural choice if he is looking for a long-term store of value that is not stocks.
Unfortunately, the total value of the world's silver is small relative both to Berkshire's market cap, as well as its cash holdings. It would be virtually impossible for Buffett to take a meaningful position in silver without massively driving up its price.
Not investment advice! Consult a financial adviser.
Berkshire's enormous cash hoard:
https://www.bloomberg.com/news/articles/2020-05-02/buffett-stays-on-the-sidelines-amid-market-tumble-as-cash-climbsBuffett keeps selling stocks in May:
https://www.reuters.com/article/us-investment-funds-berkshire/buffetts-berkshire-slashes-goldman-stake-exits-phillips-66-travelers-idUSKBN22R3DLCharlie Munger on money printing:
https://www.wsj.com/articles/charlie-munger-the-phone-is-not-ringing-off-the-hook-11587132006Buffett 1997 letter to shareholders:
https://www.berkshirehathaway.com/letters/1997.htmlBuffett and precious metals:
https://www.forbes.com/sites/greatspeculations/2019/09/16/look-which-precious-metal-is-beating-warren-buffett/#4792c4b931c7Buffett, silver, and a new billionaire:
https://markets.businessinsider.com/news/stocks/warren-buffett-bought-3500-tons-silver-made-thomas-kaplan-billionaire-2020-5-1029228443Global stockpiles of silver:
https://www.gainesvillecoins.com/blog/how-much-silver-in-the-worldBerkshire key statistics, including cash holdings:
https://finance.yahoo.com/quote/BRK-A/key-statistics?p=BRK-AMy favorite gold royalty stocks:
https://www.youtube.com/watch?v=313gvI1e9LwMatthew Kratter is the author of the Amazon best-seller "A Beginner's Guide to the Stock Market":
https://www.amazon.com/Beginners-Guide-Stock-Market-Everything-ebook/dp/B07S31TBF5If you like my teaching style and would like to learn more about investing and trading stocks, options, and futures, be sure to check out my online courses here:
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https://www.youtube.com/watch?v=AcM6aqWUm6k