Warren Buffett Quotes
"Inflation swindles the bond investor too, it swindles the person who keeps their cash under their mattress, it swindles almost everybody."
Buffett said that in reply to being asked if inflation “swindles equity investors.”
Over his six-decade career, he has lived through multiple inflationary waves. Buffett has often compared inflation to an invisible tax that’s remarkably difficult to avoid.
In April, consumer prices jumped 8.3%.
The message for investors? There are few good places to hide when these waves hit and losses should be expected in nearly all asset classes.
"If you told me you owned all of the bitcoin in the world, and you offered it to me for $25, I wouldn't take it because what would I do with it? I would have to sell it back to you one way or another. It isn't going to do anything."
Warren Buffett’s opinion on bitcoin and other cryptocurrencies remains firm. He believes that digital assets derive value only from another buyer’s willingness to overpay for them.
It’s probably safe to say that Berkshire will never hold BTC or any other crypto on its balance sheet. That said, Buffett has missed several significant tech trends in the past — he even regrets missing out on Amazon and Google. Only time will tell if he’s right about cryptocurrencies.
Charlie Munger Quotes
"We've got people who know nothing about stocks being advised by stockbrokers who know even less … It was disgusting. Now it's unraveling. There's been some justice."
Buffett’s business partner has some strong words for trading platforms that have turned the stock market into a “casino.” The combination of free trading, order flow sales and gamification may have inflated the bubble over the past two years.
“[We] found some things we would prefer to own rather than Treasury Bills.”
This might be the most underrated quote of the event.
Berkshire Hathaway has been hoarding cash for well over a year. At the end of 2021, the company’s cash sat at a record high of $146.7 billion. But over just the past few months, about a third of that war chest has been used to make investments.
Buffett deployed roughly $4.5 billion in soon-to-be-acquired game developer Activision (ATVI). It’s an “arbitrage” play to capture the spread between the current market price and the proposed acquisition price.
He also spent $600 million to add to his largest position: Apple (APPL). Apple now accounts for roughly 41% of Berkshire’s public portfolio. Another big bet included a $4 billion stake in computer maker HP (HPQ).
Of course, Buffett’s multibillion-dollar bet on energy stocks is making all the headlines. He added about $7 billion to his stake in Occidental Petroleum (OXY), while Chevron (CVX) is now Berkshire’s fourth-biggest equity holding.
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Fine art as an investment
Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.
That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.
Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.
And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.
On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.
Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.
Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.