Tuesday, November 8, 2011

Buffett was Buying in Q3 - Were You?

It's funny, the first thing I noticed as I flipped through BRK's 10Q this past weekend was the cash flow statement.  Significant buying of fixed income, equity and other investments to the tune of $22.5 billion.  The financial news quickly picked up on this and and it made headline news for about one day.  Then they were all quickly back to the issues in Europe.  Who can blame Buffett as stocks sold off during the quarter?

That said, how about some personal reflection and intellectual honesty.  Did you feel fearful and sell during Q3?  Did you buy during Q3?  Were you worried about Greece and sold off some holdings?  Be honest what did you do during the third quarter?

If you are honest and reflect on what you did you can learn a lot about yourself.  Humans are natually egocentric and to reflect on mistakes is a sign of strong intellectual ability (and leadership).  This exercise will also demonstate your self esteem.  Are you secure enough in your mind to be honest with yourself?  So what did you do during the quarter?

I'll be honest with everyone reading this.  I bought a tiny amount of BAC class A warrants in the quarter.  I didn't sell anything.  I must admit though, I felt like day trading when the swings were getting out of hand but I resisted doing anything foolish. 

Now that we know Buffett was buying during the quarter... any guesses on what he bought?  I would be willing to bet that Buffett bought more Wells Fargo.  Furthermore, I would be willing to bet he purchased over a billion dollars worth of Wells.  Anyone want to make me a friendly bet?


Best Regards,
Kevin

Disclosure - Long BRK.b, WFC and BAC

Postscript - Buffett didn't buy a billion in Wells Fargo.  I wish to retract my offer.  HT:Cord

Postscript2 - I also purchased some GE and JNJ for a family member in a retirement account.  Both were being offered at a 4% dividend yield. 

2 comments:

  1. Fantastic blog. Adding it to my Morning Coffee app. Q3 was one of my busiest buying quarters in the last two years.

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  2. Hi Anonymous,

    Just so you are aware, Anonymous comments aren't allow on this blog. You appeared new to the blog so I made an exception.

    I encourage transparency and accountability. If you want to say something you must be willing to sign your name to the comments.

    Regards,
    Kevin

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