I Found this article to be pretty interesting and it talks about how Warren Buffett is sitting on one of the largest stock piles in history and that's 157 billion dollar. That means that Burkshire Hathway, which is the company that was founded by Warren Buffett is sitting in on so much cash. But the question is, why does he expect the market to sell off? Is he looking for a potential big acquisition? Uh, he did buy $1.1 billion worth of Berkshire Hathaway stock just last quarter which is down 1.1 billion 1.4 billion from the pre previous quarter which was Q2 because he sees that Berkshire Hathway is undervalued. Can I show you very quickly what the value is for Berkshire Hathway very quickly.

I Also wanted to show you Sqqq I lost $544 on the day and then on Tqqq I made $3,962 Okay, so um I wanted to show you the overall value. uh for Berkshire Hathway. So for Us normies, $526,000 is the over overall breakdown for the price per share for Burkshire Haway which is Brka right for us. Norm we might want to resort to BRK B which is at a $346 value, right? Overall, Uh, they should show the same pattern right? So if you look at that one versus this one, they should show the same pattern.

Just one's obviously more expensive than the other. Uh, but I thought I would break down. excuse me This article that I found really interesting I normally don't make videos like this breaking down other articles. Uh, but I thought that obviously Warren Buffett viewed as one of the greatest investors of all time having an understanding.

Maybe his thought process behind sitting on $157 billion? um, maybe isn't a bad thing. So I Really hope that you learn something new and if you do, please consider dropping a thumbs up and subscribing if you feel like we earned it right. Uh, one of the biggest things that I quickly want to talk about is that again, uh, $157 billion is what they reported. Uh that? Burkshire Haway currently is sitting on uh for their cash pile, right? It says investors? uh, wait.

had to wait further two weeks to see how uh Burshire Hathway uh made these adjustments during uh or for Berkshire's uh portfolio, right? But Saturday results filing indicated that the company sold more than 12 million shares right of Chevron before it's before it purchased. has for $53 billion in an all stock deal so it looks like Warren Buffett sold before this actually happened. Let's look at Chevron very quickly on how it's trading. Isn't this pretty crazy? Right before this actual sell happened, look at this.

boom boom boom right. from overall highs of 170 to overall lows of a hit lows of 143 and it looks like it's consolidating. Now if you look at the overall day chart, it's been kind of trading sideways, lacking progress. It's crazy, right? And if we if we do the overall calculations on the% uh, return on how much they could have lost 13 nearly 14% is is what they Sav themselves by selling 12 million shares of Chevron shares right before they purchased hasz for an all stock deal meaning that Chevron gave has an all stock deal which kind of does dilute or devalue their stock price because that's how they're acquiring $ 53 billion worth of a company.

Um, um, other than that, one of the things that I quickly wanted to break down is that it shows that their portfolio shrink. so again, they're reducing their portfolio from 359 uh, 353 billion to 319 billion by the end of June This is a de a decline fueled by the slide of broader stock market as the investors became to believe which again isn't wrong that the Federal Reserve will continue to raise interest rates higher for longer, right? The Federal Reserve said that they're going to be very hawkish that more rate hikes were to be expected. Obviously that didn't go according to plan, but one thing that I found to be pretty interesting is kind of skipping this very quickly. This just shows the cash pile that they've been sitting on and we just hit a record of 150.

7.2 billion? Not we I guess Berkshire Hathway did right. Um, obviously. uh Warren Buffett has obviously uh, previously been criticized and critiqued for you know, the different moves that he makes. Obviously, you know everyone views him.

A lot of people view him as one of the greatest investors of all time, but this is one thing I Found to be pretty interesting. He directed the proceeds from the stock sales as well as cash flow. Berkshire Berkshire Um, many businesses generated into cash and treasury bills. Remember when the stock market was selling off because treasury bills were surpassing treasury, Yelds surpassed 5% It looks like Warren Buffett viewed that as an interesting or attractive investment long term.

So this is very, very interesting because we're now beginning to kind of be able to see inside Berkshire Hathway's Investments right? So they took money that they had invested in the stock market and they invested it into treasury builds. People normally do that. Investors normally do that because treasury bills, whatever they offer, is pretty much guaranteed right. The US government has to pay that back.

But why would you cap it at 5% or 4.9 or 4.75 Whatever it is that they whatever rate it is that they offered you. it's most likely because maybe you see a potential downturn in the stock market. so you're choosing to play it safe and just put it in treasury. You know, bonds, Because at least at that point it's a guaranteed return.

Now you're taking money away from the stock market and putting it into another Avenue to at least guarantee that return of nearly 5% right? Quite interesting. So, the company's cash pile surged during the quarter by nearly $10 billion to a record 157.6 billion, a sum that gives a formidable fire power for acquisition. So what is in store for Burkshire Hathway? Do they have a big acquisition in store? Again, something to take into consideration? Uh, But this is also something that I found to be pretty interesting. It says Berkshire has become one of the big beneficiaries of Rising Us interest rates, which have climbed to over 5 cents this year, right? Uh, 5% This year, the company disclosed that its interest income it was earning on its Insurance Investments climbed to $17 billion in the 3month period, lifting the sum to over 5.1 billion over the past 12 months.

That eclipsed uh total Burkshire Hathway earned Uh in its cash reserves and pring 3 years combined. So again, they're making a lot of their money not only on interest, but as as well as their investments in the insurance space. Pretty interesting, right? A very traditional way on how to invest your money. The thing that I find so interesting about Warren is again, he's obviously um, scrutinized very very often for how he chooses to invest.

But anytime that he sees any form of uncertainties, we see him invest into treasury. We see him go cash. and then when he goes Cash He he goes into safer Investments such as treasury bonds, insurance and you know, offering at a much higher interest rate. And what better time to do so? If you're super cashr and people are still trying to borrow money, think about it, right? Mortgages are at what 7 to 8% interest rates And if you were sitting on a bunch of cash, why not offer it at that 7 to 8% interest rate? It's almost like a perfect recipe if you're cash.

Rich Kind of like how Burkshire hat the way it is right now. so again, you can criticize all you want. but at the end of the day I mean he definitely has the experience and the understanding of these conditions. And I guess we'll just have to follow up and see.

does the market correct itself And he ends up again winning by having a safer form of investment by being invested in treasury bonds. or is Market going to rally? And does he miss out on that because he's locked in at that 5% right? And then we're going to see him buy back in into these companies as they begin to recover. Um I Do see him picking up uh or Brook sh have the way is picking up more of their own shares at the 1.1 uh, billion dollar worth of those shares just the previous quarter and then the quarter before that, they picked up 1.4 billion. So um, they view their stock to be undervalued at the $500,000 price per share.

But nonetheless I Just think I Just thought it was a very interesting kind of article to read. Um as I Feel like we're all kind of trying to decide. You know what's to come for this market, right? Especially with the Federal Reserve Are we going to see overall markets continue to rise towards the end of the year? Or are we going to get rejected here, sell off and sell off for the remainder of the year? And can things get worse before they get better? It seems like for Burkshire haway I mean there's a reason that he's staying so cash-rich right? Maybe it's just a safe play because there's a lot of avenues right now to be able to lend and make money off of that interest and with treasury bonds, a much safer investment. But also, um, you know, can he potentially miss out on a end of year rally if the markets begin to actually uh Notch higher Something to take into consideration, right? So tomorrow? Uh for Tuesday One thing that again I do want to make you guys aware of is that Michael Bar who is the vice chair is set to speak at 9:15 a.m.

and then when it comes down to economic reports, we have the trade balance which is 1 hour I'm sorry, um, this is at 8:30 a.m. Eastern time and then at 3:00 p.m. eastern time we have the Consumer Credit Report. So if you have any questions about that, feel free to message me either via Discord or via Instagram But nonetheless I Appreciate you guys' time.

I Hope that you guys found this article to be interesting if you guys did again, feel free to share your thoughts down in the comment section and I Would love to see you for tomorrow's live trading session again. My trade today that originally started for Tqqq was all caught in our Lpp live trading session so they got to see my entries, they got to see my exits, but most importantly, they got to hear my thought process behind the trade. and if you want to see that as soon as tomorrow. second link in the description down below to one time payment lifetime access and you get to watch me trade live every single day starting tomorrow like always, let's make sure that we end the year on up! Take Care Team.