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Buffett is hoarding $188B in cash in short term Tbills collecting 5.4%
- paulpauper 3y agoBut BRK way bigger too. Meaningless unless you control for size of firm
- scotty79 3y agoThat's really silly. This chart just shows that he hoards treasury bills all the time. Only spending some after the crash possibly to buy severely discounted businesses.
- toomuchtodo 3y agoNo deal is better than a deal at a bad price.
- EduardoBautista 3y agoIt’s also really hard to deploy 188B efficiently into anything else other than stock buybacks.
- ganeshkrishnan 3y ago5.4% is a solid return. Given that the treasury department has initiated treasury buybacks, it's a solid guarantee that rates are not going anytime lower according to their own calculations perhaps even throwing in the towel about trying to fight inflation. S&P has overshot even the most optimistic projects of 2023 by over 15(?)% and Apple is only going up due to buybacks. No wonder Buffett is selling his apple shares and putting them into T bills and notes.
- shagmin 3y agoNot sure if this is accurate but I've read he used to sell put options relying on the float from his insurance business as collateral. He could easily be doing this using t-bills as collateral as well. The drops in cash could even partly be explained by having to use that money on puts being exercised.. although I suspect if he is doing this it's probably on a small fraction of that cash.
- _lvbh 3y agoWhat does the money even do for him at that age? He’s not gonna live long enough to enjoy spending that much
- scotty79 3y agoIt's a game for him. It's been his entire life. Money is just points. It's similar for many obscenely rich people.
- MichaelZuo 3y ago[flagged]
- fragmede 3y agoIf I don't have a collection of stamps, I don't go hungry or unhoused. If I don't have a collection of money, I run into significant problems.
- hideo7746 3y agoBecause an excess of stamps can't feed, clothe, or educate someone. It can't help house someone and it can't save someone's life. Money on the other hand can do much more good not sitting in the bank account of someone who has more of it than they could ever spend. So keeping it in there for the purpose of 'scoring points' is seen by many, myself included, as obscene. Also, I disagree that collecting money is the only hobby that would receive this criticism. Personally I would also find it obscene to collect insulin, clean water, and residential housing to name a few.
- nasmorn 3y agoThe later is quite popular in some circles
- MichaelZuo 3y agoThis logic doesn't quite makes sense. If that money is actually spent on consumer goods, instead of being collected or invested in long lived assets, then inflation will go up across the board for everyone so effectively there will be no net difference. It especially punishes the middle class because the money in their wallets would buy less proportionally. If anything ideally proportionally less money should be available for chasing after consumer goods.
- the_real_cher 3y agoThe national debt interest is 2 trillion a year and instead of taxing the middle class is paying them to use their money. I think the middle class should get paid to use our money as well.