WB has over 40% of his portfolio in AAPL. That’s not going to compare well in the long run against my portfolio with over 70% in TSLA. Tesla is a much younger company with much bigger growth potential than Apple.
Also, he invested heavily into BYD. I’m in the TSLA camp. Wish him luck but I hope TSLA eats his lunch
WB invests mostly matured businesses i.e. businesses that have demonstrated it can navigate a bear and bull market and still doing well. Recently, BRK did invest in some new companies but investment in them is not that big… more like exploratory endeavors to verify he can invest in newer businesses.
TSLA is still new. It rises after the 2008 GFC and market is a bull market till last year. This is the first time, TSLA is put to test in a bear market. How TSLA performs might determine whether WB would invest in TLSA. So, we can’t rule out that BRK would invest in TSLA in the future.
I am loosely associating boom/ recession with bull/ bear stock market… they are not in sync, is good enough when talking in long timeframe.
WB invests mostly matured businesses => With his heavy billions, he needs higher Margin of safety !
More like exploratory endeavors to verify he can invest => When no one think of such situations, he calculates (manually amazing) and buy it bulk. When he picks like this, he wins. We will see the effect in 3-10 years.
Not so. Tesla had been around since 2003. It had already been put to test in the 2008 bear but turned out extremely strong. Tesla almost went bankrupt but Elon dumped his life savings into it and rescued it. Maybe you are talking about TSLA the stock being put to test for the first time?
Anyhow, today’s market is small potato compared to 2008. People act like it’ll fall into a depression. Good luck finding that bottom and don’t stress yourself out too much! I can care less because I’m long term buy and hold
I am a buy and hold too. Just got a RE windfall. Unexpected sale in one of my partnerships. Need to dump some dogs for tax harvesting . When will stocks peak before year end.? Election bump? Christmas rally?
Looks like this bull trap has legs. But will it exceed the August highs? I doubt I. I think all assets are headed lower until Powell lowers rates in maybe a year? 7.5% mortgages have stopped RE transaction momentum. Could be opportunities in the spring for cash buyers. Money market rates will be over 5% by then.