I am a huge fan of Warren Buffett’s. It isn’t so much that he’s a brilliant investor who has delivered a tremendous amount of value to the shareholders of Berkshire Hathaway, but rather than he’s willing and able to put some of the most complex (and controversial) topics of discussion into a context that is digestible for nearly everyone. In his upcoming shareholder letter, Buffett challenges the conventional wisdom that has long stated that cash is among the safer aspects of one’s investment portfolio and that stocks are among the riskiest. Quite the contrary says Buffett, you’re guaranteed to lose money on your cash position (although it affords you flexibility and liquidity) and over the long run a diversified stock portfolio is much more likely to produce big returns.
Berkshire Hathaway CEO and infamous technology stock evader Warren Buffett disclosed on Monday that his company had acquired 64 million shares (5.5%) of IBM this year for approximately $10.7 billion. Continue reading