Warren Buffet Is Keeping This Warning A Secret | The Economic Ninja
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Type one, if you are ready to rock. Hey, everybody, economic ninja here. I hope you are doing great. We’re going to talk about Warren Buffett. We’re going to talk about Berkshire Hathaway. We’re going to talk about plunges. Plunges in profit. And we are also going to talk about what Warren Buffett does not want you to know. Now, first off, Warren Buffett is one of the greatest cycle investors ever. He won’t be the one to tell you that, but it’s been proven over and over again, because he gets out of the markets before things go bad, and the proof is in the pudding.
He is sitting, or was sitting, let’s say, four months ago on the largest cash hoard ever in Berkshire Hathaway’s history. He only had a handful of stocks, but things went really, really bad. It just showed with Apple. Even though it’s his core holding, he took a massive hit in what was left. Now, a lot of investors, while they’re piling into the stock market, he’s selling weird. A lot of billionaires are doing that. But as I’ve said before, people don’t really pay attention to what the smart guys are doing in the room. They pay attention to what all their friends and family are doing, and the fomo.
And they’re like, oh, papa, I just want to make more money. And what you don’t realize is that you’re just losing money. Berkshire Hathaway core position in Apple just sank. I mean, what was it? They lost, like, $40 billion. And I know that’s a drop in the bucket for Berkshire, but you have to realize, they just sold apple some of it, and they’re saying, hey, it’s still our core position. Well, that’s a fact. It’s just. But people use that, and they go diving into the stock thinking, well, it’s a buy because it’s their core position. No, ding a lings.
That’s the word of the day today. Put ding a ling. You know, people just sit there and they think, oh, it’s his core position. I got to dive into it. No, it just means it’s the largest position that Berkshire Hathaway has, but their actual real core position is cash. Why is that? Because everything’s falling apart. Check this out. Two stories for you. First one. Yahoo. Finance. Berkshire’s profit plunges 64%. Portfolio holdings on portfolio holdings as Buffett sells apple. All right, now, I’m pretty sure Berkshire Hathaway stock is up right now because of something stupid, some algo trader, something to do about insurance blah, blah, blah, blah, blah, blah, blah.
You have to work like Buffett. You got to be an investor like Buffett. And that’s a cycles guy. We’re moving into cash. We have inflation. Hedges like gold, silver, a little bit of bitcoin, which we’re getting really close to an inflection point. If we break above that 65, whoo. We’re going to be crushing it. Oh, by the way, that crypto ama, if you want to join it, newsletter links down below. Everyone will get an email. It’s Thursday at, I think, 04:00 p.m.. Pacific. Don’t, don’t. There’ll be a sign up link. It’s free. All right, here we go.
It says here. Oh, and let me know. It’s pretty windy out here. Let me know if you can hear me. And I don’t know if there’s that chirping going on. Berkshire Hathaway’s first quarter profit plummeted along with the paper value of its investments. But the company said Saturday the most of its business it owns outright performed well. Just, you know, that’s what all companies say when things are burning. Like, don’t sell our stock. Everything’s going, okay, we’re selling our stock, but don’t you sell our stock. I mean, we’re not selling our stock. They’re not selling Berkshire Hathaway stock.
They’re selling all the stocks that they hold because things are going bad. Just don’t sell our stock, please. That’s what they’re really saying. Just, just, you know. The company reported a $12.7 billion profit on 8.8 per class A share in the quarter. That’s roughly one third of last year’s 35 billion, or $24,377 per a share. So you can see that’s, what, a third of what they made last year? But it’s a profit. Right? That’s good, but it’s a lot less profit. You got to see what’s going on here. I’m not telling you to sell Berkshire Hathaway.
They’re actually super smart because they’re moving to cash and they’re going to buy stocks and companies up for pennies on the dollar. This thing collapses. Okay. It says the figures were heavily influenced by a large drop in the paper value. It’s just paper. Don’t worry. It’s just paper. Of Berkshire’s investments, Buffett encourages investors to pay more attention to the conglomerate’s operating earnings. That exclude the investment figures. Operating earnings jumped 39% to 11.222 billion billion from last year’s 8.065 billion as its insurance companies showed strong results. Why are insurance companies showing strong results? Well, let’s take a poll.
Type two, if you’re getting charged more for insurance, whether it be homeowners, auto insurance, life insurance, mental insurance. You know, a lot of democrats need that. And just let me know, type two, if you’re getting charged more this year than last year. Oh, wait a second. Stand by. Yeah, lots of two. It’s weird. Okay, so. Okay, cool. So, again, logic prevails. On a per share basis, the year’s first quarter operating figure amounts to 70. Who cares about all these numbers? Let’s just get back down here. Okay? Buffett was a net seller of 17 billion in stocks during the quarter.
What? Why would Buffett sell stocks? Everything’s going great. I mean, if you just listen to Jim Cramer, if you just listen to. Who’s that other bald dude? What’s that? What’s his name? Dave Ramsey. I mean, they’re all saying, buy stocks, buy mutual funds. Everything’s great, great, great. Everything’s awesome, awesome, awesome. But Buffett is selling. He’s a net seller of $17 billion in stocks during the first quarter, including trimming about 13% of Berkshire’s massive Apple stake at 135.4 billion. Actually, in January 1, I think that steak was worth about 174. So 174. -135 I didn’t really finish high school.
What is that, 40,000,000,040? It’s just a paper loss. Who cares? Like me selling bitcoin last week. Whatever. Okay, so here we go. The estimated value of Berkshire’s Apple stake suggests Buffett sold off more than 100 million shares in the. So who did he sell it to? Probably a bunch of people that don’t know what’s going on. Copy. In the past, Buffett has said he invested in Apple stock because of how devoted consumers are to the company’s products. You know, I went into an Apple store the other day. I didn’t actually go in. I went outside because I’m a Republican or a conservative, actually.
Sorry. Let’s fire it up. Let’s just say it right now. Type apple if you own an apple phone, and type Android if you got an Android. I don’t even know how to spell Android. I’m gonna be honest with you. But I’m an Android guy. I like the developer options. All right, so we got that story. Things are going bad with Buffett, but we’re gonna go a little bit deeper. Okay. This second story tells a lot more. Bert, this had a zero hedge again. Now, look at. Look at the difference between. Yahoo. Yahoo is just saying, oh, look, operating expenses and per share.
Oh, look at the numbers. But look at what the story of the author on zero hedge is talking about. They’re talking about the cash hoard, okay? That’s the forward thinking person. They’re going, why is Buffett building such a big cash hoard? Just like I’ve been warning everyone, you got to follow what those billionaires are doing. And when they’re moving to cash, it’s because they know the cash is not trash. Regardless, if you listen to. What’s that guy was trying to get you to invest in his apartment buildings? What’s his name? He spends a lot of money on ad revenue so that you get.
He gets in front of you, like every day. What’s his name? He’s got a jet. He brags all the time. Whatever. He takes your money and gives you 4% back. My point being is that all of these guys don’t realize cash is not trash. When the economy turns down and you can buy stocks, you could buy companies for pennies on the dollar. This is what Warren Buffett did back in 2005, 2006. He started buying up transport stocks. As they plummeted, shipping companies, freight companies, rail companies, and nobody else had cash. Well, now he’s sitting on the largest cash hoard in history.
And it’s funny the difference in the news outlets, because there are some authors, some reporters that understand cycles and how important this is, and there are others that all they do is report stuff. They go, blah, blah, blah, blah, blah. All right, there we go. That’s why Fox business does not want the ninja on. And I only say, I will go on live, nothing else. Ask me whatever you want about economics. I might thrill you. Says here us stocks are seeing no evil and certainly hearing none. But Berkshire Hathaway’s ever growing cash pile should hold a warning for those who are over exuberant.
That’s the word for today. Let’s see here. Berkshire’s war chest surged to a record 189 billion at the end of the first quarter. And chair Warren Buffett told shareholders over the weekend that he expects the pile will rise. Why? He’s telling you he’s expecting to sell more stocks, but he’s taken time. He’s selling it on good, strong days where everybody feels good because the sun’s out. He says, we’d love to spend it, but we don’t. We won’t spend it unless we think we’re going. We’re doing something that has very little risk and makes us a lot of money.
That’s just a successful person talking. It’s like the opposite of Joe Biden. Wall street, of course. But it’s so cool. He’s he successful? He just takes money from taxpayers and from drug dealers. Ah, the Wall street type four, if you agree. Wall street, of course. And I only say that because there’s cocaine in the White House. Okay, sorry. Let’s get on point ninja. Wall street. True story. Only had one sip of coffee before I came on with you guys. Let’s have some more. True story. It’s decaf. Hold on a second. Talk amongst yourselves. I gotta go do something.
I’ll give you a topic. Russia versus Ukraine. Who’s gonna win? Hashtag it. Yeah, sorry, I’m just a weirdo. Yeah, I know. Keep walking, guys. I’m just reporting the news. Are you awakened? Awoken. All right, now I’m just talking to thousands of awesome people behind me. Don’t. Never mind all the awesome people behind me. I know it looks like I’m talking to a rock. All right, I got to get back to normal civilization. Most awesome people. All right, let’s do this. Says Wall street, of course, equates higher return with higher risk. But here is one of the best investors of all time, decreeing the very notion that one needs to do something.
I don’t even know how to read that word. Erosionlessly risky to earn additional dollar of return over and above what is available to passive investors who buy the entire market. Stocks rallied on Friday after the markets interpreted the April non farm payroll data as providing just the right backdrop for the Federal Reserve to cut rates. Isn’t that so cute? All these investors on Wall street like, oh, papa, you going to lower rates? Not this week, not this month. That’s what’s happening. Gosh, it’s like a little bunch of little children. Are you going to lower rates now? How about tomorrow? How about next month? You’re going to do it sometime.
It’s getting very hard to keep all this debt up. Why do the people whining on Wall street sound like weirdos from Sweden? All right. It says over the long term, stocks can’t yield returns in excess of corporate earnings and economic growth. But investors have been in no mood to listen, and they may stay complacent in the short term. Look, here are the facts. Let’s just bring this all together. There are a lot of people staring at me right now. Warren Buffett knows the market’s crashing. I know the market’s crashing. Type seven. If you believe the market is crashing regardless what the numbers are.
Every store I go into, there are less and less people in the stores and the ones that are in there are spending less. I went to a freedom stick guns and ammo show the other day, the biggest in the region. There was nobody in there. I asked the vendors, what’s it like this year? And they’re like, it’s not good. Nobody’s spending money. Like, that’s just sad. These are freedom seeds and boom boom sticks. It’ll be the greatest day of most men, women’s lives, but they don’t have the money. So we all know that this is happening and it’s going to get worse.
So we need to sit back, get out of debt, have more cash on the side, buy some inflation hedges and just you remember when the stock market starts to tank and it’s going to, it’s going to pull a lot of things down with it, like bitcoin and other things. It’ll take the paper price of gold and silver down. However, you’ll be able to go into a coin store and they’ll try and rip it out of your hand and you’ll be able to sell it for over spot at those points because the derivatives market will be imploding, loans won’t be happening.
Will it happen tomorrow? No. Is it coming and is it getting worse day by day? Yes. That means you can go. Thank you lord. I get another day to save some money and get out of debt and get ready for this because this isn’t going to be 2008 for all of you now. This isn’t 2008 again. You’re gonna crush it. That’s it. That’s the message of this channel. And if you like crushing it, then stick around. If you want to be a winner and not a loser, hit the subscribe and stick around because the people inside of this comment section are the most amazing human beings around the earth.
And this club’s only getting bigger and stronger. And I want to see you win and win harder and win louder. And people around you aren’t going to want to be your friends anymore because all you’re doing is winning. You’re going crap, I’m just going to go get more friends and then I’m going to win more. Have you heard this before? We’re going to win and win and win. I don’t care how scary it is, I don’t care how dark it gets. You can’t see light without dark. And we are going to keep on winning. Type ten.
If you agree with that hashtag win if you want to do that. But I can guarantee you this, you won’t get sick and tired of it. You’re not going to get tired of it. You’re going to keep crushing it. You’re going to go from losing in the past to winning in the future and you’re going to go from win to win to win. And I kid you not. Stop saying, oh, I wish I was more ready. You just thank God every day that it doesn’t happen that you’re winning more and you’re winning more and you’re winning more.
End of story. I don’t care what all those educated idiots out there think, all those intellectuals, all those people that have esteemed themselves, they’re going to lose. You’re going to win, end of story. I don’t care. Your race, your sex, your creed, your religion. I care about your heart. And that is what is going to get us through this. And not only that, we’re going to absolutely dominate it. We are going to buy all this, their stuff, all the mockers. Well, I guess I should leave now. I hope you guys have a great day. The ninja is out..
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