Warren Buffett's Historic Cash Stash - A Big Signal for Investors?

??Learn:? Staying Focused in a Turbulent Market

In times of political noise and economic uncertainty, staying focused on core investment principles is essential.?

The market has a history of resilience, and as investors, we must keep our eyes on the long-term growth drivers rather than reacting to every headline.?

Here are a few key lessons to reinforce a steady approach:

1. Long-Term Market Resilience: Historically, the stock market has shown consistent growth regardless of which political party holds the White House. The chart below shows how long-term investing—rather than timing investments by political cycles—yields the strongest results.

1. Focus on Corporate Earnings: Strong corporate earnings are what truly fuel the market. In Q3, 74.9% of reporting companies exceeded EPS estimates, highlighting that companies are delivering solid results. This consistency in earnings is a solid indicator of economic strength despite external noise.

1. Economic Fundamentals Over Headlines: Metrics like low unemployment (4%) and steady GDP growth (2.5%) underscore a stable economy.

So while things look pretty good, you still need DEFENSE.? See the next section of the newsletter:?

?? Chart: Warren Buffett's Historic Cash Stash - A Big Signal for Investors?

Warren Buffett’s Berkshire Hathaway ($BRK) is sitting on over $300 Billion of cash, hitting an impressive 28.0% of total assets in Q3 2024 – the highest it’s been in over three decades. That’s DOUBLE their cash position just one year ago.?

What's going on? Buffett is stockpiling cash at a pace not seen since the mid-2000s when Berkshire's cash share hovered around 24.5% in 2005 and stayed high through the financial crisis.

But here’s the kicker: for the first time since 2018, Berkshire stopped their buyback program cold.?

Is this Buffett’s way of saying the market’s too pricey? Does he see value ahead or a reason to wait? Or is he just ok earning 4%-5% on his money?

This is why, as I’ve said many times, you need both OFFENSE and DEFENSE.

Defense is what allows your Offense to perform without all the emotional stress you normally experience while investing.?

You want to be able to put yourself in position to capitalize on opportunities while protecting from the downside. It is that simple:

Buffet ALWAYS plays DEFENSE. Learn more about defense here.? https://startbfu.com/

??Productivity: Gravity Cubes To Keep You On Task.

Yes, I have a timer on my phone. But there is something different about having this little cube on my desk that helps me to keep focused and knock out tasks.

Simply turn the cube to choose the time, start and pause the timer. You can also add time as well.

We just started using these with homeschooling our 10 and 13 year olds as well. They seem to love them as much as I do!

Here are the cubes I use: https://a.co/d/a2FPpoJ

?? Resources:

Build the perfect Offense/Defense setup so you can stop worrying about money. Click Here: https://startbfu.com/

??? Free Linkedin Group:

Build your Modern Family Dynast: https://www.dhirubhai.net/groups/5156642

Thank you for reading!!!