- Warren Buffett has lost more money this year than almost any other billionaire.
- The Omaha oracle quietly takes smart steps that its doubters might prove wrong.
- A typical example: His controversial oil game Occidental Petroleum is the top performer of the S & P 500 today.
Warren Buffett has seen more cycles in the stock market than most of your favorite traders combined.
Yet a high-spirited new generation viewed the Omaha Oracle as a relic of the past. It is no longer relevant in this landscape affected by corona.
Buffett has too much money on the sidelines, they say.
He is increasing his investment in oil?
Today he shows us why.
Warren Buffett’s Pet Oil Stock is groundbreaking
In January, Buffett’s major oil bet, Occidental Petroleum, approached $ 48 per share. Two months and an economic standstill later, it crept along at $ 10 a head.
He lost a lot of money and continued to sit on the sidelines.
Analysts wondered if Warren Buffett had lost touch. Some traders, like Dave Portnoy, claimed they were smarter than him.
Then Berkshire Hathway bought another 17 million OXY shares in mid-April Analysts were confused.
Today Occidental Petroleum is the top performer of the S & P 500.
So far, it has risen by over 10% that day.
It’s over 20% higher than buying Buffett in April.
Oil prices and demand must continue to rise for companies like Occidental Petroleum to build a sustained rally. However, this is a start.
And it’s not Buffett’s only recent victory.
Buffett makes movements
Warren Buffett is said to have bought back Berkshire Hathaway shares valued at $ 5 billion.
While companies bought back their own shares at all-time highs, Buffett (supposedly) bought back at a strong discount.
Sure, he lost more money this year than almost anyone else. But as a stock exchange continues to rise despite all adversity, It is important to keep that in mind Buffett has historically underperformed bull markets.
So he lurks too massive stack of cash of over $ 130 billion.
When the stock market comes to its senses and begins to reflect that Damage to the real economy, then Warren Buffett will be ready to pounce on the steep discounts.
Until then, enjoy the Dave Portnoys of the world.
Disclaimer: The opinions expressed in this article do not necessarily reflect the views of CCN.com and should not be considered as investment or trading advice from CCN.com. The author does not hold an investment position in the above securities.