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Markets are settling into holiday mode, with stock futures slightly down on the last full trading day before Christmas. Here’s where things stand today: * Nasdaq-100: +0.37% * S&P 500: +0.04% (flat) * Dow Jones: -0.22% On Friday, the S&P 500 rose 1.1%, recovering
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Government surveys that track the economy are failing. Budgets are shrinking, people are skipping surveys, and economic data we rely on is becoming less trustworthy. This is a big deal—because when the numbers are wrong, decisions that affect markets, businesses, and everyday life go wrong, too. Here’s what’
The S&P 500 Value Index just dropped 3.7%, marking its longest losing streak on record. Meanwhile, Bitcoin smashed past the $100,000 mark, and the Nasdaq climbed to 20,000. To me, it seems that value stocks have been left in the dust, and investors chasing bigger
Just when you thought Warren Buffett couldn’t pile up more cash, he’s got a new record: $325 billion. Meanwhile, I'm over here figuring out how to stretch my paycheck.
Berkshire Hathaway’s cash reserves hit insane levels in Q3 2024. What’s he waiting for? A once-in-a-lifetime deal? Or maybe he just likes watching his cash grow. Let’s dig into how he built this “money mountain” and what it could mean for Berkshire’s next moves.
Building the Cash Mountain
Buffett’s cash pile didn’t happen by accident. A big part of it? Trimming Berkshire’s Apple stake.
- Apple Moves: Back in 2016, Buffett jumped in when Apple was trading at $25 a share. Fast-forward, and he’s been selling some of that stake, bringing Berkshire’s Apple holdings down to $70 billion from a peak of $178 billion. That’s a lot of cash freed up.
- Cash Growth: That Apple sale rocketed Berkshire’s cash to record highs.
Berkshire vs. Big Tech
Sure, tech giants have a lot of cash. But Berkshire? They’re in a league of their own.
- Big Tech Comparisons: Apple holds $65.2 billion in cash. Microsoft? $78.4 billion. Even Amazon and Google with $88.1 billion and $93.2 billion look small next to Berkshire’s $325 billion. Buffett’s stockpiling cash like there’s no tomorrow.
- Why This Matters: This isn’t just a flex. It’s a strategy. Buffett isn’t jumping into overpriced markets. Instead, he’s biding his time, waiting for deals to open up.
Betting on Treasury Bills
With all that cash, you’d think Buffett would be throwing it around. But no—he’s playing it safe with U.S. Treasury bills.
Why? Liquidity. Treasury bills keep Berkshire’s cash easily accessible, so Buffett can pounce on the right deal when it comes.
Then there’s stability. Treasury bills are low-risk, which fits perfectly with Buffett’s cautious vibe in today’s unpredictable market.
A Few Key Takeaways
- Big Cash, Big Plans: Berkshire’s cash stack is at $325 billion, boosted by Apple sales.
- More Cash Than Big Tech: Compared to tech giants, Berkshire’s cash pile is next-level.
- Playing It Safe: Buffett’s sticking to Treasury bills, holding out for the right moment to strike