Random Thoughts

Selecting only the facts buttressing one's view is known as confirmation bias. One of the several leading justifications for yesterday's market dive was a preceding report from Berkshire Hathaway, a little holding company headed by Warren Buffet. It marked the seventh quarter in a row during which Berkshire reduced its equities holdings. The stake in Apple shares was cut in half. BofA was another notable name. Since Buffet has a huge followership he's known to move markets in certain names. Investors who wanted to sell got a great excuse. I will omit the technicalities behind SEC 13D/G reports, for another day. It's worth noting that the cost basis is not exposed, and the exact timing is also unknown. These reports are lagging information.

However, the Oracle of Omaha, as great as his track record is, has made some bad calls. A notable one was the selling of all airline stocks in May 2020, during the scary COVID times. Given the circumstances with the entire world's travel shut down, it was a rational, albeit painful decision. Berkshire took a big loss there. Ultimately, it was proven to be a knee-jerk reaction, as markets reversed and stampeded higher in only a few months.

Even Buffet could be wrong sometimes. Cherry-pick facts at your own risk.

#finance
August 2024

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www.tgoop.com/random_from_sherlock/353

290 viewsAug 6, 2024 at 20:45

Selecting only the facts buttressing one's view is known as confirmation bias. One of the several leading justifications for yesterday's market dive was a preceding report from Berkshire Hathaway, a little holding company headed by Warren Buffet. It marked the seventh quarter in a row during which Berkshire reduced its equities holdings. The stake in Apple shares was cut in half. BofA was another notable name. Since Buffet has a huge followership he's known to move markets in certain names. Investors who wanted to sell got a great excuse. I will omit the technicalities behind SEC 13D/G reports, for another day. It's worth noting that the cost basis is not exposed, and the exact timing is also unknown. These reports are lagging information.

However, the Oracle of Omaha, as great as his track record is, has made some bad calls. A notable one was the selling of all airline stocks in May 2020, during the scary COVID times. Given the circumstances with the entire world's travel shut down, it was a rational, albeit painful decision. Berkshire took a big loss there. Ultimately, it was proven to be a knee-jerk reaction, as markets reversed and stampeded higher in only a few months.

Even Buffet could be wrong sometimes. Cherry-pick facts at your own risk.

#finance
August 2024

BY Random Thoughts