Making sense of the markets this week: May 3, 2021

by akoloy

Warren Buffett remains to be sitting on that large fats pockets

Warren Buffett, usually touted because the world’s biggest investor, remains to be sitting on a mountain of money, estimated to be within the $140-billion vary. 

Buffett is the CEO of Berkshire Hathaway (BRK.A, BRK.B) a publicly-traded firm which you could personal. (Full disclosure: we personal that inventory in my spouse’s spousal account.) 

He is a worth investor, and his not backing up the truck to purchase shares suggests he can’t discover any value in today’s market. He was definitely very cautious within the early days of the pandemic and amid the entire attendant uncertainties, he didn’t make purchases, even through the pandemic market crash. There was not sufficient readability for an investor who practises “safety first.” 

Perhaps (as a guess) Buffett feels that an actual and lasting market correction is to return. He is ready to get his likelihood to be grasping. We can solely speculate. 

All stated, I have a look at the unique cause for why I purchased Berkshire Hathaway. It covers a worth focus for our whole portfolio combine and it’s now a beautiful hedge for any near-term inventory market correction. The world’s biggest investor is sitting on a mountain of money, ready for that correction. And the Berkshire Hathaway inventory has delivered near-market returns during the last a number of years. 

If you’re in search of a hedge, Berkshire Hathaway would possibly offer you $140 billion good causes.

Elon Musk’s compensation goes to the moon!

The unique title I had in ind for this part included the phrases “ridiculous CEO compensation.” The always-controversial Elon Musk, CEO of electrical automobile maker Tesla, and of SpaceX, is usually within the information, however this time it is perhaps for the unsuitable cause. 

While Musk will doubtless be very joyful to just accept any large payday, shareholders is perhaps uh, shocked, after they see the compensation numbers. 

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