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I don’t think this has anything to do with apple. It’s about getting out before a likely market crash, that will inevitably lower the value of almost all compan

by zpeti 2y ago

I don’t think this has anything to do with apple. It’s about getting out before a likely market crash, that will inevitably lower the value of almost all companies. The only risk here for buffet is the fed coming in with a huge rate cut or just suggesting it, or restarting QE in light of a market crash, which will give stock markets an insane boost (including apple)

loceng 2y ago
Are they putting their cash into gold or similar then? A market crash will also coincide with the US dollar crash, no? Or is a market crash separate from the US dollar failing?
- jjtheblunt 2y ago
  If Berkshire Hathaway sells 1 million shares of AAPL for N dollars per share, and the market drops the price to .8 * N dollars per share, he just buys more shares back with those same dollars, for example. It would be a very Buffett thing to do, because shares produce dividends per share, so increasing share count is its own strategy.
- lazide 2y ago
  They are not necessarily correlated - but often can be. [https://www.fidelity.com/learning-center/trading-investing/strong-dollar#:~:text=While%20a%20strong%20dollar%20may,want%20to%20diversify%20their%20portfolios https://www.fidelity.com/learning-center/trading-investing/s....]
- ruune 2y ago
  A bubble burst or similar doesn't have to crash the whole economy. It definitely can, especially when it's stuff like financial or real estate. A tech bubble burst would devalue many of the highest valued stocks but doesn't have to take the entire USD down with it. That being said, I haven't studied economics and am very much a layman. So if someone wanna correct me, please do!
  - rsdfvn1099 2y ago
    There's even a precedent. https://en.wikipedia.org/wiki/Dot-com_bubble https://en.wikipedia.org/wiki/Dot-com_bubble Sucked for California. Everywhere else was fine. But traffic was so much better in the bay so there's that silver lining...

by zpeti 2y ago

loceng 2y ago

Are they putting their cash into gold or similar then? A market crash will also coincide with the US dollar crash, no? Or is a market crash separate from the US dollar failing?

jjtheblunt 2y ago
If Berkshire Hathaway sells 1 million shares of AAPL for N dollars per share, and the market drops the price to .8 * N dollars per share, he just buys more shares back with those same dollars, for example. It would be a very Buffett thing to do, because shares produce dividends per share, so increasing share count is its own strategy.
lazide 2y ago
They are not necessarily correlated - but often can be. [https://www.fidelity.com/learning-center/trading-investing/strong-dollar#:~:text=While%20a%20strong%20dollar%20may,want%20to%20diversify%20their%20portfolios https://www.fidelity.com/learning-center/trading-investing/s....]
ruune 2y ago
A bubble burst or similar doesn't have to crash the whole economy. It definitely can, especially when it's stuff like financial or real estate. A tech bubble burst would devalue many of the highest valued stocks but doesn't have to take the entire USD down with it. That being said, I haven't studied economics and am very much a layman. So if someone wanna correct me, please do!
- rsdfvn1099 2y ago
  There's even a precedent. https://en.wikipedia.org/wiki/Dot-com_bubble https://en.wikipedia.org/wiki/Dot-com_bubble Sucked for California. Everywhere else was fine. But traffic was so much better in the bay so there's that silver lining...