{"id":241108,"date":"2021-05-03T18:55:26","date_gmt":"2021-05-03T15:55:26","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/economy-is-red-hot-but-watch-for-inflation\/"},"modified":"2021-05-03T18:55:26","modified_gmt":"2021-05-03T15:55:26","slug":"economy-is-red-hot-but-watch-for-inflation","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/economy-is-red-hot-but-watch-for-inflation\/","title":{"rendered":"#Economy is ‘red hot,’ but watch for inflation"},"content":{"rendered":"

“#Economy is ‘red hot,’ but watch for inflation<\/strong>”<\/p>\n

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Warren Buffett said the US economy is \u201cred hot\u201d \u2014 but warned inflation is a rising threat as businesses and jobs come roaring back.<\/p>\n

\u201cRight now, business really is very good in a great many segments of the economy \u2026 It\u2019s almost a buying frenzy,\u201d Berkshire Hathaway\u2019s chief executive told shareholders at the company\u2019s annual meeting this weekend. \u201cThis has been a very unusual recession.\u201d<\/p>\n

Over the weekend, the company reported a $12 billion quarterly profit at the virtual event \u2014 a massive number that nevertheless fell short of what many investors had hoped for after the past year\u2019s eye-popping stock rally. Berkshire also reported around $7 billion in operating income, up 20 percent from the first quarter of 2020.<\/p>\n

The Oracle of Omaha and his brainy right-hand man Charlie Munger \u2014 who in a wide-ranging discussion blasted Robinhood and the Reddit<\/a> rally and pushed back on rising demands for disclosures on diversity and climate-related risks \u2014 defended the company\u2019s strategy over the past year. Berkshire\u2019s value-driven app<\/a>roach has lately underperformed during an era of government bailouts and rock-bottom interest rates that have goosed growth stocks like Tesla.<\/p>\n

That included Berkshire\u2019s decision to sell their roughly 10 percent holdings in major airlines. Shares of Delta, Southwest, American and United have surged in recent months even as they were hit hard a year ago by pandemic-related travel<\/a> restrictions.<\/p>\n

Nevertheless, Buffett noted that given Berkshire\u2019s strong financial position \u2014 at the time the company had $120 billion in cash and liquid investments \u2014 they could have faced demands from the US to bail out the airlines themselves. After Berkshire got out of the position, the feds decided to step in and help the airlines weather ongoing lockdowns.<\/p>\n

\"Warren
Warren Buffett, chairman and chief executive of Berkshire Hathaway, left, and Charlie Munger, vice chairman of Berkshire Hathaway, speak during the virtual annual shareholders meeting on a laptop computer on Saturday.<\/figcaption>
Bloomberg via Getty Images<\/span><\/figcaption><\/figure>\n

\u201cYou\u2019re looking at probably a different result than if we had kept our stock,\u201d Buffett said.<\/p>\n

One stock sale Buffett conceded was \u201cprobably a mistake\u201d was his decision to sell 9.81 million shares of Apple at the end of 2020. Buffet said Apple\u2019s products are \u201cindispensable\u201d to people and that Apple stock is still a bargain. Even after the sale, Berkshire still holds $111 billion in Apple stock, making it Berkshire\u2019s largest position.<\/p>\n

The wide-ranging event even touched on Buffett\u2019s fellow billionaire, iconoclast Elon Musk, and whether Buffett would consider underwriting an insurance policy for Elon Musk\u2019s SpaceX business that aims to take people to Mars. <\/p>\n

One of Berkshire\u2019s most central investments is its insurance and reinsurance businesses, but so far their insurance policies have only applied to planet earth. Buffett didn\u2019t rule out working with Musk on a space expedition but said it would come down to the premium and whether Musk himself was a passenger on the space adventure. <\/p>\n

\u201cIf somebody\u2019s asking to insure something,\u201d Buffett said, \u201cthat\u2019s called getting skin in the game<\/a>.\u201d\n <\/p><\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Economy is ‘red hot,’ but watch for inflation” Warren Buffett said the US economy is \u201cred hot\u201d \u2014 but warned inflation is a rising threat as businesses and jobs come roaring back. \u201cRight now, business really is very good in a great many segments of the economy \u2026 It\u2019s almost a buying frenzy,\u201d Berkshire Hathaway\u2019s…<\/p>\n","protected":false},"author":1,"featured_media":241109,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/05\/warren-buffett-2.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[104284,70758,5069,70551,70760],"class_list":["post-241108","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-5-3-21","tag-berkshire-hathaway","tag-economy","tag-inflation","tag-warren-buffett"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/241108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=241108"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/241108\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/241109"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=241108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=241108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=241108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}