One of the most anticipated moments for investors arrives. As every quarter, when the main guru of the philosophy of ‘value investing’ – said to be the legendary nonagenarian investor, Warren Buffett – speaks, the world of investment listens with exquisite attention. It has been that way for decades. And now it will not be less. This Saturday a packed house is expected in Omaha, the headquarters of Berkshire Hathaway, the financial holding company that founded and owns shares valued at hundreds of thousands of millions of dollars in the main American companies.
As in the great football nights in stadiums such as the Bernabéu, Nou Camp or in La Cartuja this Saturday the final of the Copa del Rey between Osasuna and Real Madrid, it is expected that not a pin will fit in the headquarters of the company that leads the savvy investor who has beaten the S&P 500 the most times since 1969.
Charlie Munger in a context in which the banking crisis is worsening and with an economic recession on the horizon. Tens of thousands of people will flock to Nebraska to see what the so-called “oracle of Omaha” has to say about his latest portfolio moves.
Banking success story
Also, considering that Buffett has been a historical investor in banks, even in the context of financial crises. He already joined Goldman Sachs in 2008 as a reference partner, while his exposure to Bank of America during the years of the outbreak of the subprime mortgage crisis increased. But they have not been the only entities he has invested in in recent decades: Wells Fargo, BNY Mellon, US Bancorp and many other companies linked to the financial sector have monopolized a significant percentage of his investment portfolio.
Now, however, with the US regional banking crisis widening its shadow like a winter sunset, the billionaire investor’s shifting of pieces in his positions has been loud. And surely something has to comment this coming Saturday. Buffett made the decision to sell some of his historical shares in banks such as US Bancorp and BNY Mellon before the crisis, or other financial institutions such as Ally Financial, while at Wells Fargo he did so before.
In a recent interview on CNBC, he spoke of the problems of the regional banks with some concern. A concern that leads him to be prudent, in general terms, with the sector as a whole: “We have wanted shares in several banks because their managers were committing foolish risks and using misleading accounting to publish benefits.”
Buffett expresses his fears in the American environment by assuring that several entities were valuing their assets without taking into account the market value, which artificially inflated their earnings and misled investors and analysts. “I thought that banks could get into a lot of trouble just for the type of things they did,” he detected in that same interview.
“I Sold Banks That We Had For 25 Or 30 Years In The Portfolio Because I Had Simply I Think The System Is Not Configured At All Well Connecting With You Punishment Punishment Punishment Punishment The Guilty… IT IS Incredibly Important That The Banking System Work Well, He Deepened. Surely in Saturday’s conference he will have words to explain in depth this strategic change in terms of bank titles that has been desired in the face of current noise.
Banks are in the spotlight and messages about the financial industry will be followed with great interest around the world. It will be observed why he has fled from almost everyone outside of Bank of America. Or also why it continues to cling to companies linked to payments such as American Express, taking into account that if an economic recession looms, consumption could be damaged globally.
the other positions
Although the focus will not only be on the financial sector, since in recent months other sales by the company led by Buffett have been known. This is the case of Chevron, within the energy sector, or Taiwan Semiconductors, in the microchip industry space.
In the third quarter of last year, Buffett surprised Wall Street with a new $4.1 billion stake in TSM, making the stock one of the 10 largest stocks in Berkshire’s portfolio. However, a quarter later he reversed course, gaining more than 51.7 million shares. In the case of Chevron, the Nebraska billionaire won company titles throughout 2022, although it is estimated that he has 162.9 million shares of the oil company.
In the part of purchases, since not everything is sales, surely a large part of the interest will turn to Apple, which is the main position of its portfolio and in which it has been increasing exposure progressively. At present, it will arouse more interest, if possible, since the apple banner has just presented its quarterly results with the announcement of a new share buyback plan for 90,000 million dollars, despite the drop in income and profits. Everything remains to be seen. The weekend will be known what is the road map of the legendary investor.
