Warren Buffett will only start buying stocks again if the Federal Reserve enter the market

Warren Buffett, CEO of Berkshire Hathaway and the most successful investor in the world, is currently 334 billion dollars in cash and history tells us that he may not spend any of them on new positions in shares unless the Federal Reserve jumps in the market and proves it.

Oracle of omaha has not held any major deals this year, despite the shrinkage of the market that appears to be the Buffett Terminal School.

Although he has never claimed the time of the market, the moves he made during the past year are now. Warren sold off Apple and Bank of America, one of his largest positions in stocks, before the market fades directly.

Now that you have the S&P 500 Decline More than 20 % of its highest levels – enter the bear market – still does not bite.

The US Securities Market is more chaotic than ever

Over the past year, while others were riding technology or betting on the stability of the interest rate, Warren withdrew and stopped the money. Now, as the compound sinking on the NASDAC exchange by 10 % in two trading sessions and Dow Jones weight, the average successive losses of a successive loss of more than 1500 points, the Berkshire defensive pile of Berkshire protects it better than most of them.

This is the same as the play that Warren used before. In 2021, when the Covid epidemic raised the global economy to a dead end, he had tens of billions ready for publication. But he did not. Wait for the federal reserve.

“We could have deployed $ 50 or $ 75 billion, and immediately before the Federal Reserve,” Warren said at the Berkshire meeting of 2021. “When Jay Powell acted as he did, that was incredibly important.

Instead of jumping to external investments during Covid, Warren bought the special shares of Berkshire. The company spent $ 24.7 billion on re -purchases in 2020 and another $ 27 billion in 2021.

He said at that time: “We cannot buy cheap companies as much as we can,” he said at that time. “We cannot buy cheap arrows as much as we can.” That was the largest recycling in the history of the company.

The only time that the check book opened during a collision without waiting for the Federal Reserve in 2008, when the mortgage crisis destroyed the financial system. This is when the lifeblood of some of the biggest names in Wall Street became.

Goldman Sachs delivered 5 billion dollars immediately after Lehman Brothers collapsed. He threw another $ 5 billion in Bank of America and also the support of General Electric. But Warren said he was not trying to make a statement.

He said in 2020: “In 2008 and 2009, the truth is that we did not buy these things to make a statement of the world. In 2020,” he said in 2020.

“It was designed to take advantage of what we thought was very attractive terms. But they were conditions that no one was ready to present at that time because the market was in a state of panic.”

Warren was only able to withdraw these moves because he was carrying money and could move quickly.

He said in 2009: “You are facing, in a chaotic market, especially when people need large sums … suddenly, invited to billions of dollars, if you will play at all,” he said in 2009.

Now, with the same kind of chaos in the market thanks to Trump’s wrong economic policies, Warren still does not play. His silence is not only about timing. It comes to waiting for the federal reserve to take the first swing.