Why doesn't Buffett, who has $ 137 billion in cash, take action?

(World of Finance and Economics) Why doesn't Buffett, who has $ 137 billion in cash, sell?

　　China News Agency, Beijing, May 3 (Xia Bin) In the early hours of Beijing time on the 3rd, the annual Berkshire Hathaway Annual Conference was held. In the special period of the new coronary pneumonia epidemic, there was no old partner Munger around for the first time using PPT. The "stock god" Warren Buffett shared online and answered investor questions.

　　Before the conference, Berkshire Hathaway's performance in the first quarter of this year was released. The data shows that the company realized a net loss attributable to shareholders of 49.746 billion U.S. dollars, of which stock investment losses were 54.517 billion U.S. dollars. At the same time, at the end of the first quarter of this year, Buffett held $ 137 billion in cash, a record high.

　　The outside world wonders why US stocks have suffered a setback before. Why did the "share god" sit in cash but didn't sell?

　　Chen Kaifeng, the chief economist of Huisheng Financial in the United States and a professor at New York University, pointed out that Buffett is really optimistic about US stocks, and there is really no action. The number of stocks repurchased in April is still 0. The reason why Buffett did not bargain-hunting US stocks is that the Fed has injected huge liquidity into the market, causing a 30% increase, and the "bargains" on the market have disappeared.

　　The stock market does not invest and remains calm in the acquisition market. "(Acquisition) We didn't do anything, because we don't see anything appealing. Now this situation may or may not change soon," Buffett said.

　　At this shareholder meeting, Buffett admitted two mistakes. One was a "understanding error" when evaluating airline stocks. The outbreak caused almost global travel to stop, and the airline's stock price fell sharply. He revealed that he had cleared all the stocks of the four major US airlines.

　　The other is about investing in Western Petroleum one year ago and experiencing the current dip in oil prices. Buffett bluntly said: "If you are a shareholder of Western Petroleum Corporation or a shareholder of any oil company, then you and I are in the oil price. There was a mistake in the trend. "

　　He further stated that at the time of the oil price level, the above investment was attractive, but when the oil price was around $ 20 per barrel, such an investment would not work, and when the oil price fell to a negative value, it would be even more unworkable.

　　At the same time, Buffett also gave four investment recommendations.

　　First, don't borrow money to speculate. Given the uncertainty of the New Corona Virus pandemic, people should not borrow money to participate in the market and invest in the stock market.

　　Second, in the long run, stocks are better than national debt. At present, the 30-year US Treasury yield is only 1%, and the inflation rate is 2%. In the long run, stock returns will be higher than Treasury bonds.

　　Third, choose to diversify investment.

　　Fourth, buy the S & P 500 Index Fund. Ordinary investors should buy a wide range of markets over a long period of time, instead of following other people ’s stock selection suggestions.

　　Yang Delong, chief economist of Qianhai Open Source Fund, said that there are many investment methods, but practice has proved that value investment is a magic weapon for long-term victory. Most investors want to get rich overnight or get quick results, and investing often requires long-term research. Only in this way can we capture good targets and hold heavy positions to obtain good returns. (Finish)