dimanche 16 août 2020

The big thing with Berkshire and Barrick Gold

Most superinvestors latest transactions are out on Dataroma. Which means that a lot of people are excited about the recent picks of their favorite guys.

We've learned that Buffett bought Barrick Gold during the last quarter. And some people said that Buffett now believes more in gold than in the american dollar . Or that he believes more in gold than in businesses. 

Well, these fucking opinions make me mad because that fucking buy of Barrick Gold represents only 0,28% of Berkshire Hathaway. How could anyone talk more than 30 seconds about that? That 0,28% stake is 565 million dollars but it's like 50$ for you and me. 

My smallest position represent 1,5% of my portfolio and I wouldn't dare to say anything about my convictions of life related to that stock.

On the other hand, Apple now represents 44% of Berkshire. That ultra big position means much more than any new position under 1%. It means that Buffett thinks that Apple is the future of humanity or some similar shit. 

Some people still believe that superinvestors know precisely what they're doing. More, some of them see Buffett as the Jesus of investment. Well, let's just remind that Buffett bought recently some airlines and he sold them not so long ago, knowing before buying them that airlines were one of the worst investment possible. Maybe that this investment in Barrick Gold is as illogic. Who fucking knows? 

Anyway, Buffett is much more intelligent than me and you, it's a fact. His portfolio still does OK after all these years. The point is not to say that Buffett is good or not. The point is to say that so-called analysts or people on Twitter are fucking stupid to write anything about the great change of philosophy of Buffett related to a 0,28% position. 

Proportions mean everything in investment. You may pick 9 shitty stocks representing 10% of your portfolio and one excellent stock representing 90% of your portfolio and you're a great investor. Much better than if you bought 9 great stocks representing 10% of your portfolio and one shitty stock representing 90% of your portfolio. 

Why do I have to explain this?

Because PEOPLE ARE STUPID. I hate people.

I hate all of you, fucking cocksuckers.

7 commentaires:

  1. In all likelihood, Buffett didn't even make that purchase of Barrick Gold. It was probably one of the two other dudes, Todd or Ted, who manage a small portion of the equity portfolio who also made the Amazon purchase.



  2. Completely right, and there is nothing wrong in investing a small portion of a portfolio in cyclical stocks like Barrick

  3. Ray dalio put half a billion dollar into Gold and doubled his position since last quarter.

    Well it doesnt represent anything right now from big hedge fund but its a first signal given to the market that those big guys are increasing their allocation to gold ( which doesnt produce anything) that is a signal of coming dangers on banks and our monetzry system.

    We will look in the position third quarters and i believe more fund will join silver and gold rally.

    1. You're assuming that these guys always do the right thing.

  4. I am assuming they are doing the right thing if we compared how gold and silver performed vs fed injection, velocity of money through the last crisis we faced in 2008.
    Past history teach us that money worth nothing if you print to much (germany with deutch mark, lira in turkey, many african countries).
    Dollar index is touching 2 year low
    Many indicators are showing that bank with negative interest will lose a lot of money.
    I trust my gut on that

  5. Sounds like someone needs a holiday...