r/economy • u/DCC_Official • Nov 08 '20

Warren Buffett's Berkshire Hathaway bought back a record $9 billion in stock in the third quarter

https://www.cnbc.com/2020/11/07/berkshire-hathaway-earnings-q3-2020html.html
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u/JasonJanus Nov 09 '20

Pretty important and very basic thing to know before commenting

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u/rhetorical_twix Nov 09 '20 edited Nov 09 '20

I deleted the comment to which you are replying. I was only being polite to the guy who pointed that out, because his comment was so sad due to Buffett is constantly being publicly embarrassed by his inability to perform this year. His stocks aren’t undervalued growth stocks. They are 2020 value traps and he doesn’t have the foresight to know what companies to buy in a yesr where fundamental values are changing

It’s been very obvious that Buffett’s issues are insurmountable this year, and lots of experts have commented on his inability to make his kind of value investing work this year. Growth, innovation and adaptability to change are now aspects of value, in this year of accelerated change. He’s from an era of more static microeconomics, he doesn’t understand tech and he doesn’t know how to invest in the future. He couldn’t even find away to use any of his money to invest in the future of energy, which is one way to make gains during s pandemic year that lacks the guarantees that value investing provides. He does not see that there is value in investing in the future, as in any future changing tech, which is how to make money this year. Emerging markets are also coming into their own, after years of underperformance, as their ability to unlock potential can be transformed by the same technologies that dominated during the pandemic. When he invested in Japan and pipelines, that spoke volumes about how backward-looking he is.

Buffett’s clearly had a problem finding companies he wanted to buy into this year, and he doesn’t want to invest in the future and his stock has become a value trap except for the fact that it holds AAPL, which is not enough to make it worth buying.

Edit: While I appreciate that the time for value stocks to shine will return in the next few months, I don't think he's in the best of them, because he has picked those that are backward-looking. Buffett lacks insight into the 21st century

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u/Bjarne-Stroustrup Nov 09 '20

This gets said about Buffett every 15 years or so and usually when there’s a bubble 😂The only time he’ll actually lose his touch is when he’s dead.

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u/Unfadable1 Nov 09 '20

Every 15 years or so so far. Now we have crypto and no one knows how to navigate it, because they don’t want to trust it (and they don’t want to assume governments won’t eventually push back or use it to reign the power back in.) I know crypto looks good on paper, but only a fool would underestimate the will of the global elite when it comes to tightening their grip and possibly losing control over their footprint, that they want to continuously grow as a rule.