Categories: News

by Shaun Fox


Categories: News

by Shaun Fox


“When giants speak humans have no choice but to listen” Shaun Fox

And if you are paying attention friends then the real gold is in what the mighty are not saying.

The giant in question here is Warren Buffet, undeniably the most successful investor of our time.

I say investor and not share trader as he is commonly referred to, as in my opinion these titles could not be further apart.

The difference that i see is this, investors are buying in for the long term, adding value to the enterprise, even if it is just financial commitment and faith, now a share trader is someone watching stock numbers on a board, gambling against bullish and bearish odds, or trading with others money and needing a fluctuating market so that they can constantly buy and sell some of your portfolio so they can justify a new round of fees and commissions.

Warren Buffet’s investment strategy is based on the Value Investing model, this is where you buy shares at a price that is less than its intrinsic value, Warren then added his own spin on this by “finding an outstanding company at a sensible price” rather than generic companies at a bargain price.

Warren invests in companies and good value businesses where there is a long-term opportunity to hold and return profits and has made not a few aggressive take overs of these companies through the years.

It is safe to say that Warren and his company Berkshire Hathaway are not afraid to get in the market and pursue opportunities where they find them.

What interest me the most are the times when Warren and Berkshire Hathaway are not investing and purchasing.

Warren famously took his investors’ money out of the market in a lead up to a recession and invested the money into a textiles company “Berkshire Hathaway”, even after that recession he kept his money out of the market in any meaningful way until the end of the next recession, at which time he re-entered the market aggressively.

We have seen a pattern of Warren being able to read the market and anti to what you may think, he is not afraid of a recession, in fact he has been quoted more than once expressing his positive outlook on recession as this is where some of his best purchases have come from.

Berkshire Hathaway is currently stockpiling cash and is holding around $122.4 Billion, to give perspective and to use Warrens own previous words Berkshire Hathaway would be better to be holding closer to $30 Billion. especially since Berkshire Hathaway is an investment company.

Berkshire Hathaway has made no significant purchases for 3.5 years.

What does this mean? It is a very good indicator 3.5 years ago that a recession was coming, if Warren was a weather-vane, we would be looking to him to see which way the winds were blowing as he seems to be more reliable than the evening weather report.

This is not a bad thing, it means that opportunity is about to knock, if i had to make a statement about why they are stockpiling money, the obvious reason is that they are getting their buying fund ready.

Exciting times ahead my friends and lots of opportunities .

Always listen for the silences.

Shaun Fox

Related Posts

View all
  • Hello Dear Friends, I am sure that any of you who invest in crypto are well aware of the most up to date crypto news as you refresh your browser every 15 seconds to monitor your crypto stash. For those of you who are not as finely tuned to the crypto market is in freefall […]

    Continue reading
  • Hey guys,  It’s time to talk about sustainability and how we can consciously invest in our planet. But first, let’s look at what Sustainable Investing means. The term has a variety of names, from socially responsible investing to impact Investing but regardless of what you call it, the idea is to invest in projects that […]

    Continue reading
  • Jeremy Jeremy quite contrary, how does your garden grow? Well, like Mary from the nursery rhyme, quite well, Jeremy Grantham’s version of silver bells and cockle shells is a company that had $118 Billion dollars of assets under management in 2015. So what is the connection between a nursery rhyme and investing? Well if you […]

    Continue reading
  • Let’s start with a little story, shall we? Once upon a time, King Midas asked the gods for one wish; for everything he touched to be turned into gold. At first, it was great; trees, rocks and buildings turned into gold upon his touch. Unfortunately, he soon learnt that even his food turned into gold […]

    Continue reading

Subscribe to my Newsletter