Why yes, I DO have $325 billion in cash on hand. What do you suggest that I do with it?

Photo above – Warren Buffet plays his ukelele, while playing with his toy trains, while deciding what to do with the $325 billion he’s hoarding after selling a bunch of stocks.

In today’s edition of Lives of the Rich and Famous we focus on Warren Buffet. The “Sage of Omaha”. Possibly the nutmeg, too. It doesn’t really matter that Mr. Buffet was born in 1930, and is 94 years old. There’s no age limit when you want to mess with the US economy. Not that selling most of your stocks and hoarding cash is especially demented. See link below.

Warren owns and operates Berkshire Hathaway, a holding and investment company. And he’s made a LOT of money at it. If you’d bought $100 worth of BRK in 1965 at $20 a share (just 5 shares) that would be worth over $3 million today. Each share would be worth $678,000, because Warren doesn’t believe in stock splits. Keeping the price high keeps the riff-raff like you and me from buying in, attending Berkshire Hathaway annual meetings, and asking a lot of woke questions, tax questions, etc.

Let’s get back to the $325 billion. Warren has sold almost HALF of Berkshire Hathaway’s stock holdings. He prefers cash. But this apparently is not just an October election head fake. Mr. Buffet has been raising cash for more than 2 years. He doesn’t want to own stocks. Remember, this is the guy who multiplied his money by 36,500% in just a few decades. So, if Warren says “cash, now”, he could possibly be right.

What’s Warren selling to raise cash? Well, he doesn’t like bank stocks. No sane person wants to hold those if we're about to jump off a cliff into a recession. When a bank goes bust, the shareholders get zero, and the FDIC merges the bank in with one of the survivors. When Warren bought his Bank of America stock, it was at $5 a share. Because . . . recession. Today BAC is over $40. Well, that’s not a 36,500% return, but it’s still pretty good - 800%. This guy is smart! When was the last time YOUR bank paid you 800% on your CD?

Warren does NOT want to own stocks right now. At least not bank stocks. Or Apple. A $1,200 iPhone 17 with 5 cameras and an onboard AI chip that makes it unnecessary to read actual news could be a discretionary purchase when the going gets tough.

There’s every reason to believe the going will get tough, no matter which of these knuckleheads gets elected on Tuesday. We have $35 trillion in government debt. Nobody has a plan to fix that. Well, Kamala does. She wants to DOUBLE the tax when you sell your stock. And have a special income tax surcharge if you’re a millionaire. And also assess a new tax on stocks which you own, but haven’t sold yet. That idea is really wild. Taxed if you do sell, taxed if you don’t.

Anyhow, Warren has $325 billion in cash, waiting on the sidelines. I doubt if he’s going to jump back into stocks if Trump unexpectedly wins the election.

I have more than half my 401K in cash. I don’t care who wins the election either. I’m not voting for the mental case OR the low IQ career politician. I expect things to get worse before they get better. I'm writing in for someone else, like I did in 2020.

I’m just sayin’ . . .

Berkshire's cash soars to $325 billion as Buffett sells Apple, BofA; operating profit falls