Understanding the markets this week: May 3, 2021

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    Warren Buffett is still sitting on that big fat wallet

    Often touted as the world’s greatest investor, Warren Buffett is still sitting on a mountain of cash valued at $ 140 billion.

    Buffett is the CEO of Berkshire Hathaway (BRK.A, BRK.B), a publicly traded company that you can own. (Full disclosure: we own these stocks in my wife’s spouse’s account.)

    He’s a value investor, and since he doesn’t support the truck to buy stocks, he can’t find any Value in today’s market. He was certainly very cautious in the early days of the pandemic, and despite all the uncertainties that came with it, he made no purchases even during the pandemic market crash. There was not enough clarity for a “safety first” investor.

    Perhaps Buffett feels (as a guess) that a real and permanent market correction is imminent. He’s waiting to get his chance to be greedy. We can only speculate.

    All in all, I’m looking at the original reason I bought Berkshire Hathaway. It covers a value focus for our entire portfolio mix and is now a wonderful hedge for any short-term stock market correction. The world’s largest investor is sitting on a mountain of cash waiting for this correction. And Berkshire Hathaway stock has delivered near-market returns over the past several years.

    If you’re looking for coverage, Berkshire Hathaway may have good $ 140 billion reasons for you.

    Elon Musk’s compensation goes to the moon!

    The original title I had in ind for this section included the words “ridiculous CEO compensation”. The always controversial Elon Musk, CEO of electric vehicle maker Tesla and SpaceX, is often in the news, but this time it could be for the wrong reason.

    While Musk will likely be very happy to accept a big payday, shareholders may be shocked to see the compensation numbers.

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