Warren Buffett points one of his long-standing investment philosophies to the recent surge in noisy trading, one value-minded investor said.
It’s about being greedy when others in the market are afraid.
Chris Brightman, Research Affiliate CEO of Yahoo Finance Live, said:
A 91-year-old billionaire investor revealed on Monday that his Berkshire Hathaway would spend $ 11.6 billion to buy insurance company Allegheny. With this agreement, Buffett’s insurance empire extends beyond the car insurance company Geico and the reinsurance beast Gen Re (General Reinsurance Corporation).
Alleghany recorded sales of over $ 12 billion and net income of $ 1.1 billion last year.
File-Warren Buffett, Chairman and Chief Executive Officer of Berkshire Hathaway, smiles on the bridge following Berkshire Hathaway’s Annual Shareholders’ Meeting on May 5, 2019 in Omaha, Nebraska. .. A statement reported on Monday, March 21, 2022. (AP Photo / Nati Harnik, File)
Buffett went deeper into the insurance industry to buy the name of energy as crude oil prices soared in the wake of the crisis in Russia and Ukraine.
Buffett bought another 18.1 million shares of Occidental last week for nearly $ 1 billion. Recent purchases have been hot after Berkshire has spent around $ 6 billion over the past two weeks buying Occidental shares.
Berkshire currently owns approximately 14.6% of Occidental Petroleum through approximately 140 million shares. The company will hold a major investor day on Wednesday.
Interestingly, these deals arrive despite Buffett’s favorite stock market indicators being overvalued.
Other investment professionals reflect Brightman’s sentiment towards Buffett’s latest move. They also point out that Buffett may be aware that the world will eventually move beyond short-term headwinds such as the COVID-19 pandemic and the Russia-Ukraine crisis.
“I think it [the deals] Need to remind me and remind me [everyone] The world is still spinning. Companies are still planning for the future and are still doing things to make them great companies. “
Brian Sozzi Editor-at-large and Yahoo Finance Anchor.. Follow Sozzi on Twitter @BrianSozzi Or later LinkedIn..
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