By Elliott Wave International
Warren Buffett recently acknowledged that he’s playing in overtime in this thing we call life. At 93, the acclaimed investor is still very much in the game and making his moves.
Our August Elliott Wave Theorist elaborates:
We Are in Good Company
We have been steadfastly recommending complete safety in the form of Treasury bills, 2-year Floating Rate Notes, a safe bank and gold stored offshore. We have felt quite alone in this opinion. So, we were pleasantly surprised to see this headline, from CNBC on August 7:
Warren Buffett now owns more T-bills than the Federal Reserve
It’s true: Buffett’s investment firm, Berkshire Hathaway, owns $235 billion worth of T-bills; the Fed owns $195 billion worth. Of course, most of the Fed’s money is in other government-guaranteed debt. Buffett’s is mostly in stocks. Still, his current cash holdings are about twice the average for the previous five years. How did he accumulate so much cash? By selling stocks in this heady environment. As CNBC reported,
“Buffett, 93, pulled off a surprising and yet prescient move by selling big chunks in stock holdings including Apple last quarter, ahead of a drastic global sell-off this week. Berkshire has been a seller of stocks for seven quarters straight, but that selling accelerated in the last period with Buffett shedding more than $75 billion in equities in the second quarter.”
One would think that investors would be emulating their #1 hero. One would be wrong.
The August Elliott Wave Theorist goes on to explain how many investors are behaving in the opposite manner as the Oracle of Omaha.
More than that, you’ll learn why the Quarterly Report on Bank Trading and Derivatives Activities is one of the scariest reports you’ll ever read.
Robert Prechter’s Elliott Wave Theorist has published since 1979 and is still going strong.
Find out how you can access our latest stock market insights below.
FREE — Read Our New Stock Market Highlights Issue
Want to see what’s next for stocks and more? We’ve curated the must-read highlights from our top publications. Don’t miss our unique analysis. Check it out now — free!
This article was syndicated by Elliott Wave International and was originally published under the headline Why We Tip Our Hat to Warren Buffett. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.