Aging ?: Kenneth Fisher – Berkshire Hathaway remained inactive during the crisis because Warren Buffett is too old | message
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Kenneth Fisher thinks Warren Buffett is too old
Berkshire disappointed investors
Buffett is risk-averse in the corona crisis
Berkshire Hathaway breaks with investment philosophy
According to Fisher Investments CEO Kenneth Fisher, Warren Buffett, CEO of Berkshire Hathaway and lighting figure for the investment industry, is now too old for the investment business, as he said in an interview with CNBC-TV18.
To take this very provocative change, Fisher took Berkshire Hathaway’s inactivity during the Corona crisis. The normally trade-happy Buffett (89 years old) – who is also called the oracle of Omaha in the scene – has not made any major investments this year despite the volatile markets and has accordingly avoided risks.
Berkshire sold all of its airline positions at the start of the crisis to mitigate some of the losses. A rather atypical behavior for the group, which is particularly active in times of crisis. In the wake of the last recession, Berkshire invested large sums in Goldman Sachs and General Electric.
Buffett is afraid of taking risks in the crisis
“The reality of big investors – including my father – is that they lose their competitiveness from a certain age. I don’t suggest that Mr. Buffett lost them, but historically I can’t find anyone of his age who isn’t relative in times of crisis remained unemployed, “commented Fisher.
Sharp criticism, which Buffett may have to ascribe to himself, because for years the investment legend preached “to be greedy when others are afraid”, as Businessinsider reports.
Berkshire also has cash holdings of $ 137 billion that would allow the company to take certain risks.
Is Buffett Losing Its Shine?
Fisher added to his criticism later in the conversation, “You become inactive during crises. In my opinion, that’s what happens to Mr. Buffett. Because of his age, he’s become relatively inactive. Could I be wrong? Yes.”
Even before the crisis, Buffett was criticized by Berkshire investors because the company only bought back $ 1.7 billion in shares and made almost no new investments.
The fact that Berkshire sold $ 6.1 billion positions during the crisis was also a breach of philosophy by the holding company. Traditionally, during a crisis, society invests a larger proportion of its capital to benefit from the slump, and Berkshire acted counter to this, as described.
These aspects, combined with the company’s below-average performance, make Buffett’s facade of inviolability crumble.
Henry Ely / editorship Forex-news.com.net
General Electric Co.
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