Why Warren Buffett Is Raising Cash: Market 'Euphoria' In Final Stage | Bill Smead
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- čas přidán 2. 06. 2024
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Bill Smead, Chairman of Smead Capital Management, discusses the late stages of market euphoria.
*This video was recorded on May 9, 2024
Bill's previous interview with me: • Brace For 'Ultimate Re...
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0:00 - Intro
0:50 - Berkshire Hathaway and cash
4:33 - Markets entering new era
19:20 - Passive investing
22:20 - Valuations and investing
30:55 - Energy sector
36:45 - Inflation and monetary policy
40:46 - Financials sector
#investing #stocks #economy
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Are we in the late stages of market euphoria? Comment below on what you think will happen next, and don't forget to subscribe!
FOLLOW SMEAD CAPITAL:
Website: smeadcap.com/
Twitter (@SmeadCap): twitter.com/SmeadCap
You could listen a bit more bro
Buffets holding of cash: 2017: 116 Billion
2018: 112 billion
2019: 128 billion
2020: 138 billion
2021: 147 billion
2022: 128,5 billion
2023: 168 billion
2024: 200 billion and now this is a big story, why??
I'm mostly in cash and waiting for this market to re-level on the reality of our situation. Or are there any ways I can avoid a crunch and maximize my savings of $350k?
from my study, 90% of the time in an election year, the stock market stays positive for quite a long time. 2024 is no exemption, but it is better to be guided, ideally by a well experienced and licensed advisor
Even with the right technique and assets some investors would still make more than others, as an investor, you should’ve known that by now, nothing beats experience and that’s final, personally I had to reach out to a market analyst for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
*Sharon Lynne Hart* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Scam chat
Taking early notes from Warren as to the importance of sound asset diversification and risk management It can't be overstated. I've been trying to grow my portfolio for sometime now and it’s been stagnant, I would greatly appreciate any other suggestions.
The market has gone berserk! irrespective of experience level, everyone needs a sort of coach at some point to thrive forward.
True, A lot of folks downplay the role of professionals until being burnt by their own emotions. I remember couple of summers back after my lengthy financial setback, I needed a good boost to help my business stay afloat hence I researched for licensed advisors and came across someone of due diligence who helped a lot to grow my reserve notwithstanding inflation to over half a million dollars.
How may I contact your licensed advisor as my portfolio is dwindling?
Marisa Michelle Litwinsky’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
My strategy has always been to invest half of my income in the stock market at the beginning of each month. The second part of my strategy is not to sell for at least 5 years, but recently my portfolio has suffered major decline about $150k in losses. What can I do please?
Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions. which may reduce your dividend gains or income, speaking to a certified market strategist can help with pointers
Agreed. It's always wise to be proactive and consider diversifying our investments to manage risks in uncertain economic times. I delegate my day-to-day investing to an advisor ever since suffering a major steep-down late 2019, amid rona-outbreak, and as of today, I'm semi-retired with barely 25% short of my $1m retirement goal after subsequent investments
my partner’s been considering going the same route, could you share more info please on the advisor that guided you to such impressive gains
“Rachel Sarah Parrish” is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 and first half of this year with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder.
The truth is that this is really not as difficult as many people presume it to be. It requires a certain level of diligence, no doubt, which is something ordinary investors lack, and so a financial advisor often comes in very handy. My friend just pulled in more than $84k last month alone from his investment with his advisor. That is how people are able to make such huge profits in the market
nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
I'm cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "MICHELE KATHERINE SINGH" I've worked with her for 9 years and highly recommend her. Check if she meets your criteria.
Thank you! I entered her full name into my browser, and her website came out on top. I filled her form and i hope she gets back to me soon.
A generation of new investors is going to learn the hard way.
😂/😢
Mr Lin has a very respectable style of letting his guest run like a bronco without constantly yanking on the Raines or whipping them into submission. Thank you.
Bill Smead is always one of the best guests to interview. Fascinating.
Except he is quite wrong about the sea lions. He should just stick to economics.
Also today there are very good company undervalued li INTEL for example!
Starbucks bigger issue is their pricing. They raised prices again this past week. Paid almost $4 for a grande hot tea. I’ll still go there periodically but not like i’ve done in the past. If you bought daily, that’s $1,400 a year give or take. That’s more than I’m willing to spend. I can buy a good size box of tea for $8. Just crazy. Convenience is only worth so much.
That’s why I get my Senior coffee at Mcdonalds! $1. I used to buy a tall americano. After they increased price to $3, I said hell no 👎
Yea, but it seems to me that no one under 30 knows anymore how to brew a pot of coffee! ☕ 😐
David, I’m to the point where a miss very few of your excellent interviews. And they’re getting better. This one is one of the best.
I have to agree as I was thinking the same thing. I was laughing as well and hitting pause and going back to listen again so many times during the interview. Lots of good interviews, but this one was the best. This guy has some history and will probably be right on his predictions. I love these seasoned guys who have lived through several bear markets.
Bill is a superstar. His fund SMVLX has a 14 year Cagr of 14.90%. Inflation adjusted cagr is 11.97%!
So average
@@matsutendai Destroys the S&P 500 in that time frame.
@@kealgu it’s barely higher so “destroy “ is objectively false plus my mutual fund got higher returns lol
@matsutendai 1 million invested over the 14 years SMVLX made over 8.4 million, The S&P 500 7.3 million. Let me do the math for you, that is over 1 million dollars. I am sure that's chump change for you. Lol!
@@kealgu cool so we agree it didn’t destroy the S&Ps returns, both examples you gave are very close to just buying the index.
REMEMBER, these crashes usually take a year or two to finally bottom out with many many dead cat bounces along the way. PICK your stocks and your price points way ahead of time and start slowly averaging in once they hit that point. Spread your buys out over an entire year.
David, Great guest, great interview. Bring Bill back again soon. It was not only educational, but entertaining as well. Thumbs up.
David sending secret market signal encoded in his hair. Go long energy. Count on oil use going up 😀. Very slick form of messaging
The "Lin Hair Poof Inflation Index". I swear by it.
He wears a top hair toupee
Hair Gel: Buy, Buy, Buy 😂😂😂
Oil doesn't rise in a recession buddy
I felt like he was channeling his inner Beethoven. I can totally see him playing piano like a madman with that hair.
David, I liked Mr. Smead’s historical perspective and his interesting analogies. You did a good job keeping him on task. Well done!
22:09 David Bill was CORRECT and you just moved on instead of heading his warning.... Hurd mentality is deadly sir. Thank you Bill
I think Bill is a little too long winded and historical based for David, but what he was saying is quite simple... when you overpay, who is going to rescue you when you want to take profits? So then switch to contrarian views... they hype green and want to print fake money to subsidize it, so switch to black gold (oil) and natural resources which will always be necessary to keep the economy strong.
Yup, and with the Boomers retiring, most of them will flood into bonds. The next decade will have far less capital to grease the wheels of finance.
Demographics has ruled the markets since WW1. Demographics is the force behind the economy.
All the best.
The moment he said that, I felt certain it was what you timestamped in your comment (which I read, but didn't click on, as I wanted to listen to the whole interview).
Indeed a powerful nugget of obviousness he threw there! 👌
One of the better interviews I've watched in quite a while!
Another great interview on the David Lin Report!
That was the best interview I've seen in a while.
Was really fun...guy knows his history too
I hear a lot of common sense coming from Bill Smead, clear and simple, thank you for sharing sir!
Charlie Munger says short the NASDAQ and the S&P 500 from the Other Side. 😂
What do u mean by short? Do u mean cash out or bet it's going to fall or both?
@@rapatel1642Short means bet against.
Charlie doesn’t say anything. He’s dead
@@michaelweissmullery4949 I said from the Other Side.
Bill was a really helpful guest David.
He made understandable this complex economy, as well as how to handle it.
Really great interview. Very grateful.
Keep up the good work David.👏 I’m watching from Farmington Hills, Mi😀
Another outstanding interview, David. Love your content! ❤
Many good interviews here and this is among the best. Smead's knowledge of market history is awesome. His application of common sense to investing leads to good results.
I really enjoyed this program, thank you 🙏
I was going to mention coca-cola. in 1998 it was $43 at its high and didn't hit $43 again until 2016. That's 18 years to get to all time highs again.
Microsoft took 14 years between 2000-2014
Did they pay dividends? That's worth something.
@@boggy7665 In a flat market dividends are fantastically important.
So averaging down sometimes does work? 🤠
Wow, my comment was deleted. What the... 😐
Awesome interview David
Great interview!
Great interview thank you both, like the high energy from Bill.
Great information. Thank you
lol, Bill asks; "you ever see the movie Dave?". David, no. I forgot how young David is until just then.
A very interesting perspective and analysis.
@ 28:00 Buffet and T. Rowe price, from the opposite ends of the investing spectrum, come to the same conclusion that there is regime change afoot in the 1968. This is priceless historical pedagogy.
This guy is a good one to listen to
Bill Smead is a genius! He even mentions my hometown of Astoria, Oregon! He recommended NVR many months ago and it has skyrocketed (while I shorted it 😥). His understanding of market history is very rare.
Bill is best. Sharp and to the point t and easy to understand
Loved this interview with Saul Goodman
Great interview 👍!
Keep up the great work !
Always connected to this Channel like an addicted
Appreciate the historical context. Patterns and history matters. Ty.
At last someone who has a different view along with a plan that makes sense. Great interview.
Really interesting guest. A lot of experience and knowledge, especially enjoying his talk on t rowe price and buffet in 1969
David: You should get Avi Gilburt on your show. He would be a FANTASTIC interview. Very interesting views on the short medium and long term outlooks for the markets.
Avi gets lost in his own minute tiny stuff EWA useless details...he is more of a OCD...who sees waves within waves within waves wuthin...an accountant more than anything else which offers any actionable anything fir anyone
Dave - Covid was not a bear market - it was a V craze
Another covid 19 will sure cause usa totally self destruction and disaster,,,,?... for sure,,,,
Great ,smart guest! Refreshing
Exciting times ahead with Revux! Just joined the presale - can't wait to see where this project goes
Brilliant. Sobering interview.
David Lin does it again! A great guest!
My challenge is with Scotopic Sensitivity Syndrome, so signed up for Brain FM ! Thank you
This is a best kept secret show; should be mandatory viewing, Sunday morning and night on all 3 networks.
Hey Mario! You think oil going higher does it look like a cup and handle on WTI?
Great video thanks 😊😊
Great mini history, thanks.
Good review
Best in a long time
Can consumers just boycott spending. I mean buy absolutely nothing. We should not pay mortgages or rent. Literally refuse to pay until they stop the greedflation.
I missed the part where he asked him about housing, what were his thoughts? I can’t find it again, I was listening and multitasking.
Thanks!
When Berkshire Hathaway is dumping Apple and holding a major share of BYD China EV. You know what is coming. I want to know how much money JP Morgan and Cuti bank has in China
Fools. I wouldn't touch a Chinese stock. Remember what happened to Russian stocks? They're all worth zero now. 😐
Berkshire largest holdings are US Treasuries (3 month, 6 month)
My comment about BYD was deleted. Can't be critical of Ch..a here on CZcams obviously. 😐
@@rexmundi273 They'd get a lot more bang for the buck in a "correction" ⤵️ if they held 30 year Treasuries.
@@ivancho5854 Well they hold those short term US Treasuries which can be converted into cash quickly. The thing with long term US Treasuries is, that you're never sure what long term interest rates will do. Before/In a recession they come down indeed.
Diving into Revux's whitepaper - the innovation and technology behind this project are mind-blowing!
Bill Smead = sage wisdom
Presale excitement building up! Revux's project is making waves for all the right reasons.
Fascinating.😊
Love it
You always have to consider your own age and the sequence of returns. It is devastating to buy stocks at their peak right before a crash that takes years to recover if you buy in right when you retire. If you bought something like MSFT back in 2000 at age 65 you'd have almost been 80 yrs old! before you got back to EVEN!
That's 30% cash. Sounds about right.
Very good 👍
Do these guys disclose if they have short positions ? Returns will CLEARLY be higher for everyone. Retail has wayyyyy more access to the markets this stuff never existed before basically anyone can put money into the markets now my 13 yr step son is constantly asking about it and he has no idea what money or markets or anything is lol this younger generation will be full blown gambling in the markets lol
Great way to take a lot of money from noobs
That works both ways. People can dump positions faster than ever now. Revenues still matter btw.
@@prolific1518 Noobs like you that don't understand cycles?
Markets are great for extracting the maximum number of dollars from the clueless.
@@user-yq7rr9lh9c the irony of this comment
Thank you David and Bill for this insightful discussion of what can be expected and what shaped our financial sector until now
Bill great job
What about first majestic gold?
Nice!
Kudos to the team for Revux's comprehensive ecosystem. Easy 50x soon.
Here we go again. Crash of the lifetime over and over again.
Buy silver and and water filtration before it’s too late
Just another psychic, some psychics say crash is coming, others say major bull market.
@@tiger_would4419 lol, we all use water filtration daily already, who drinks tap water? 😂🤣
Quantitative easing's a hell of a drug!
Yeh but what if he is right???
I hope we get a crazy bear market I’m ready for it this time, cash on hand!!
37:34 it's like talking about cancer, rates are the chemio which kills economy and inflation both, like in the cancer case less and better nutrients are the solution to starve cancer and let the body recover as in economy, a good economy is,an ethic and human centered rythm one.
So I can always tell by David's reaction to a statement that there's another question coming and it will be extremely pertinent also that he learned something did I hear also
Hi you tube. I don't care how many commercials I get now. I'll never give you a penny!!!!!
As long a you measure stocks in fiat currency, you have not idea what the valuation is, since your yardstick gets shorter as you measure.
If energy was correctly priced in the US we wouldn’t be driving to the grocery for the bread and milk
🚴
What does this even mean? US is producing more energy than it ever has. The additional capacity is the only reason energy hasn't skyrocketed worldwide.
end days are coming! be fearful, go cash, stay inside!
more guests like Bill!
Very interesting guy!
This guy is awesome.
Fantastic hair David!!
Rumor has it that He has many toupees
We should all have toupees like David.😂
Revux's AI-driven investment approach is what the financial world needs right now.
He likes JPM but not Google or FB?
Terrible advertisement….you ABSOLUTELY do not use dumb brain music
Sure a lot of chat about history here !!
Channeling Boone Pickins! This guy speaks my language!
Old people = scared
Young people = optimistic
Old people = Experienced
Young people = Clueless
Old people = Been through it and learned
Young people = Recency bias, everything is fine.
Old people = Know better and know when to play it safe.
Young people = Fuck it, buy Tesla and Nvidia after it's gone up a zillion percent.
Old People = Conservative and make money
Young people = Buy the latest thing at any price.
Old people = Patient
Young people = Gotta have it now.
Old people = Doing just fine in all markets.
Young people = Stressed
Old people = Buy low and sell high.
Young people = Buy high and sell low.
Old people = Buy undervalued stocks
Young people = Buy bitcoin
Old people = Own everything
Young people = Rent everything
Old people = Use cash
Young people = Use credit cards
Old people = Trump
Young people = Biden
Old people =Rich
Young people = Poor
Old people = Me
Young people = You
That’s the point! They know a little more than you 😂
Sometimes.
@@bdek68 100 years of history has shown pessimist know sht, just get rekt and miss out on best opportunities in life.
@@user-yq7rr9lh9c why would you want to buy anything now at all time high's?
Jesus why would anyone touch regional banks as an investment.
Presale alert: Revux is turning heads with its cool approach to decentralized finance. Jump in before it's too late!
Revux's presale is gaining momentum - early supporters, let's seize this opportunity together!
Let's see if anyone is paying attention. What was really big in the late 60's & early 70's that is repeating itself now, 50 years later? Three things, and those same things are here again, just as popular and accepted today. To me, that further verifies what is likely to come next...
Im just waiting on Dr Hanke and schiff 😭
I'm waiting for Mr. Hanky The Christmas Poo.
Buffet is positioning the company to have a war chest for either...... a market correction of some significant magnitude or just simply having a war chest available that can be allocated by those that step into his shoes after he is no longer at the top.. doing so in this environment is not detrimental to the business as it is getting paid a reasonable fair amount in interest woth the cash just sitting on the sidelines
The only way to reduce government debt is reduce spending - NO DIFFERENT than a household budget.