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Warren Buffett has the cash to buy Tesla, Starbucks, or McDonald's

markets.businessinsider.com

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Re: Warren Buffett has the cash to buy Tesla, Starbucks, or McDonald's

#31

Post by agustif »

tim333 wrote: post #23
kneel wrote: post #11

They really need to tax this man, he's even on record saying how he needs to be taxed more.

Berkshire the company is one of the US's biggest taxpayers. Buffett himself is giving most of his money to charity (the Gates foundation).

75% of Gates Foundation's money end's up in big four consulting firms, which by gates himself do a better work at deploying money than other more rational actors like local governments or communities.

So yeah, prob that's not charity too... it's just a way to get the maximum available tax cut, you donate to your own or your friends charity and he or she funnels backs the money where you need it to be.

Re: Warren Buffett has the cash to buy Tesla, Starbucks, or McDonald's

#32

Post by ethbro »

KarlKemp wrote: post #28
t0mas88 wrote: post #20

Earlier quoted context omitted.

Health insurance is probably going to be fine, because there will be lots of government money flowing into healthcare to drop prices (free tests etc). And total hospital bed capacity hasn't majorly increased (as in: nowhere near 2x), so the total cost they can incur per month isn't significantly higher. May even be slightly lower per patient because most complex treatments have been put on-hold. Life insurance may al…

You might have noticed ICUs are swamped and nurses are working around the clock? Hospitals do charge for that.

Health insurance will be fine. There was a study (no citation handy) that looked at severe flu seasons, and their impact on health insurers. Barely a blip.

Remember, ~80% of people have minimal symptoms after being infected with SARS-CoV-2.

You can therefore absorb a lot of care for 20%, assuming most people are insured...

Re: Warren Buffett has the cash to buy Tesla, Starbucks, or McDonald's

#33

Post by empath75 »

ethbro wrote: post #32
KarlKemp wrote: post #28

Earlier quoted context omitted.

You might have noticed ICUs are swamped and nurses are working around the clock? Hospitals do charge for that.

Health insurance will be fine. There was a study (no citation handy) that looked at severe flu seasons, and their impact on health insurers. Barely a blip. Remember, ~80% of people have minimal symptoms after being infected with SARS-CoV-2. You can therefore absorb a lot of care for 20%, assuming most people are insured...

This is going to be 20 times worse than the worst flu seasons.

Re: Warren Buffett has the cash to buy Tesla, Starbucks, or McDonald's

#36

Post by simonh »

szczepano wrote: post #30

It's too early to buy, people are still greedy.

At the level Berkshire operates at the calculation is different from generically investing in the market. Buffet buys companies, or big chunks of them, so what matters is the risk profile and liquidity of the individual company. Also when he buys by definition he will create the bottom price of the stock. Him buying will make it go up, so he can’t wait until the price hits bottom, he waits until he has the best buying opportunity and that includes beating other potential buyout investors to the deal so what they are doing matters too.

I do agree though, prices have recovered a bit due to the big stimulus package, but there is a lot more bad news to come and markets will react to that.

Re: Warren Buffett has the cash to buy Tesla, Starbucks, or McDonald's

#37

Post by radicalbyte »

t0mas88 wrote: post #20
wiredfool wrote: post #9

Earlier quoted context omitted.

Insurance covers insurable events, some of them may be triggered by a pandemic, and some of those might be excluded. Check your fine print. * Life insurance is probably going to take a hit. My life insurance doesn't mention pandemic or acts of god. Suicide yes. Pandemic no. * Auto insurance is probably going to be marginally more profitable as miles driven drop. * Home/Property isn't likely to be heavily affected. *…

Health insurance is probably going to be fine, because there will be lots of government money flowing into healthcare to drop prices (free tests etc). And total hospital bed capacity hasn't majorly increased (as in: nowhere near 2x), so the total cost they can incur per month isn't significantly higher. May even be slightly lower per patient because most complex treatments have been put on-hold. Life insurance may al…

Health insurance in the US are expecting to have a bumper year this year because all of the elective operations have been cancelled.

They have raised their expectations for next year because the pandemic gives them an excuse to increase prices and as we know every medical procedure represents profit to them and the pandemic will lead to a glut of said procedures next year.

Re: Warren Buffett has the cash to buy Tesla, Starbucks, or McDonald's

#38

Post by imglorp »

simonh wrote: post #36
szczepano wrote: post #30

It's too early to buy, people are still greedy.

At the level Berkshire operates at the calculation is different from generically investing in the market. Buffet buys companies, or big chunks of them, so what matters is the risk profile and liquidity of the individual company. Also when he buys by definition he will create the bottom price of the stock. Him buying will make it go up, so he can’t wait until the price hits bottom, he waits until he has the best buyin…

Okay since you opened the door to playing "call the bottom" where do you think it will be? I'll swag first. The end will be in sight when the US new case rate hits its inflection point and begins decreasing. From that you can sorta tell when things will settle down biology-wise.

Re: Warren Buffett has the cash to buy Tesla, Starbucks, or McDonald's

#40

Post by imglorp »

HenryBemis wrote: post #6

> Buffett prizes financial security and has vowed to never exhaust Berkshire's cash pile. Supreme risk management, risking only a fraction of the cash. Do the same and there will always be opportunities to buy on any valley/dive. The biggest the valley/dive, the biggest buying opportunity. I admire his motto: http://enrichwise.com/wp-content/uploads/2014/08/Fantastic-W... and he keeps proving it right!

And his relevant corollary to be "Fearful when others are greedy and greedy when others are fearful.”
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