Here's why Buffett never bets a stock's price will go down
| Here's why Buffett never bets a stock's price will go down Warren Buffett hasn't commented publicly on the Redditers vs Hedge Fund Short Sellers War that has captivated Wall Street, and beyond.
But he has commented in the past about short selling in general. (Short selling involves borrowing shares of stock, selling the stock, then hoping the price goes down so you can buy the shares you need to return to the lender, while pocketing the difference. If you have to pay more to buy the shares to settle your debt, you've lost money.)
He doesn't recommend it because you face potentially unlimited losses since there's no absolute upper limit to a stock's price.
And, he warns, a stock's price can remain above the company's true value longer than many short sellers can keep their nerve, or even remain solvent.
Here's what he had to say about it in the 2001 and 2006 Berkshire Hathaway annual shareholders meetings.
BUFFETT AROUND THE INTERNET Some links may require a subscription
BERKSHIRE STOCK WATCH
  BERKSHIRE'S TOP U.S. STOCK HOLDINGS - JAN 29, 2021
 Berkshire's top holdings of disclosed publicly-traded U.S. stocks by market value, based on today's closing prices.
Holdings are as of September 30, 2020 as reported in Berkshire Hathaway and New England Asset Management's 13F filings on November 16, 2020.
The full list of holdings and current market values is available from CNBC.com's Berkshire Hathaway Portfolio Tracker.
QUESTIONS OR COMMENTS
Please send any questions or comments about the newsletter to me at alex.crippen@nbcuni.com. (Sorry, but we don't forward questions or comments to Buffett himself.)
If you aren't already subscribed to this newsletter, you can sign up here.
-- Alex Crippen, Editor, Warren Buffett Watch
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Post a Comment