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21 sats \ 3 replies \ @Satosora 20h \ on: The Buffett Indicator: Market Cap to GDP Stacker_Stocks
I understamd he is cashing out...but he is just holding it as a cash fund at the moment.
You would think that he would want to invest into something, but his cash position keeps growing.
He is cashing out far less than it appears on first look. From his 2024 letter:
Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities. That preference won’t change.While our ownership in marketable equities moved downward last year from $354 billion to $272 billion, the value of our non-quoted controlled equities increased somewhat and remains far greater than the value of the marketable portfolio.Berkshire shareholders can rest assured that we will forever deploy a substantial majority of their money in equities – mostly American equities although many of these will have international operations of significance. Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses, whether controlled or only partially owned.
One note is his distinction of marketable equities vs non-quoted equities. This number of $354B does not include all the private companies he owns (about 170+ private entities).
Point being is that this isn't the "Buffet has completely cashed out" story like it first appears.
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