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How’s it going everybody this is beat the bush today i’m going to talk about investing in particular i’m gonna take a look at warren buffett’s portfolio in berkshire hathaway his favorite book of course is the intelligent investor which is a book i do recommend on top of reading this value investing book i feel like it’s very instructive to look at what berkshire
Hathaway’s portfolio is actually holding now there are various websites that tracks berkshire hathaway’s portfolio holdings what’s strange to me is that most of the websites that tracks are portfolio holdings it only talks about the securities that it holds it never talks about the cash so in one place you might see the securities that they hold which is 180
Billion in another place you’ll see that oh berkshire hathaway is holding about 109 billion dollars in cash you put two and two together and you realize that berkshire hathaway is holding more than 30 percent in cash within their portfolio most of time most people will not actually hold this much cash if you dig through a lot of websites you’re gonna see that warren
Buffett have stated himself that over the past two years or so that companies are considered value investing is getting more scarce therefore they have a really hard time deploying so much cash one hundred nine billion dollars is you know it gets to be a difficult thing to spend so on one hand you might think well i’m not berkshire hathaway i’m not that big i don’t
Have billions of dollars of course i can find smaller pieces that are value-based berkshire hathaway has its own problems of holding so much cash they’re trying to deploy as much as they can but they cannot find anything is cheap so in a way i think them holding on to this much cash might be just in preparation for maybe the economy collapsing in the future there
Might be a correction of some sort in fact there has been a bull run for i don’t know seven eight years or now and it’s very do for a correction so far so when it does pop everything’s gonna fall and when it does they’ll have a hundred nine billion dollars of cash sitting there waiting to pick up all the really cheap companies and right when they do that they’re
Gonna ride it out long term and you know right there they’re gonna make a whole bunch of profits again some of you have asked me hey how do you invest in the berkshire hathaway stock it’s called brk now those shares are about two hundred thousand dollars each they’re class a shares so they give you voting right per villages if you don’t have two hundred thousand
Dollars to spare like bill gates or something which that’s about 49% of their portfolio into berkshire hathaway hey you know if it’s good enough for bill gates maybe it’s good enough for the rest of us for the rest of us you can buy into something that’s much cheaper it’s a fractional share of that and there’s no holding rights it’s called br k dot b so i have to
Admit about a year ago i thought that it was really high then well it went even higher i think it was at $160 and then it went to $190 so i bought one share just you know kind of like a marker in my portfolio so i can track at what point i thought about buying it and boy if i bought into that i would have made about 40% compared to you know something much less than
Buying that so if i were to you know put a lot more into it i would have made a lot more gains now is it a good time to buy berkshire hathaway right now if you look at the housing bubble crash time berkshire hathaway does come down a little bit it does move with the market so in light of that berkshire hathaway is not immune to a downturn it can go down in price
Just like any other stock with that i think you need to be very careful with the market right now its all-time highs berkshire hathaway you look at them as you know warren buffett himself and based on track record i’m sure most people will think that he’s a genius investor so you know you might be able to gleam something off of his portfolio with that said think
About how much cash you’re holding in your own personal portfolio when there is a downturn if you have 100 percent invested the money goes down you can’t really sell it and then buy it back in because when you sell you’re taking a loss so you really need some amount of cash sitting on the side so that when the market comes down you can buy at a low price if you
Have 100 percent invested you can’t invest any more in it if that makes sense so at any given point you sort of need somewhat of a semi loaded gun unless you’re like trying to go all-in into the market especially at this point in time where the market is at all-time highs you need to have something in the reserve just in case because you don’t know if it’s gonna
Go down this year next year three years from now but you need that cash to be able to buy into things when things are cheap so thanks for watching i hope you enjoyed this perspective of investing and might want to consider how building a little bit more cash in your portfolio don’t forget to give me a like on this video comment down below let me know if you’re
Holding as much cash as warren buffett’s portfolio is if you’re interested in supporting this channel check out my autumn olek down innovative description below where you can get a free audiobook and if you don’t like this audiobook you can cancel it before the subscription expires and you can still keep this audiobook for free i also have a patreon over here where
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Transcribed from video
Warren Buffett Percent Cash in Portfolio By BeatTheBush
