Just before the U.S. election, Warren Buffet’s Berkshire Hathaway bought over US$20-billion in stock and declared that the U.S. stock market was cheap, with interest rates at current levels.
He said Berkshire’s Apple stake, at 133 million shares, was worth about US$17-billion and amounted to Berkshire’s second-biggest holding.
He also revealed that his conglomerate is sitting on $86-billion in cash looking for the next acquisition, but nothing is close.
However Buffet sent a warning to investors that may temporarily overshadow all the positives, as he told CNBC on Monday that U.S. shares could conceivably go down by up to 20 per cent in a sharp correction.
But his confidence is high that the U.S. economy would be better off in four years under any president, and he’s putting his money where his mouth is.