Stock market crash anticipation is being echoed by Robert Kiyosaki, who suggests that both Warren Buffett and Michael Burry are currently in a state of waiting.
Referencing Warren Buffett’s accumulation of cash and Michael Burry’s market shorting, the author of “Rich Dad Poor Dad” highlighted these actions.
Both Buffett and Burry possess the skill of value investing, excelling in the identification of lucrative opportunities amid periods of market decline.
Warren Buffett and Michael Burry stand poised for a potential downturn in the stock market, anticipating the emergence of attractive investment opportunities, according to Robert Kiyosaki.
Kiyosaki noted that Buffett is currently holding $147 billion in reserve, allocating his funds to short-term Treasurys. Similarly, Michael Burry, renowned for his role in “The Big Short,” is actively engaged in shorting the market.
Observing these strategies, Kiyosaki commented, “I’m closely observing these individuals as they anticipate a market decline before re-entering. Substantial capital remains uninvested at the moment.” Kiyosaki is the author of “Rich Dad Poor Dad.”
During the last quarter, Berkshire Hathaway, led by Buffett, divested a net sum of $8 billion in stocks and curtailed its stock repurchase activities. This move contributed to a notable 13% augmentation in its aggregate holdings of cash and Treasurys, reaching an almost-record high of $147 billion.
In a parallel development, Scion Asset Management under Burry’s guidance revealed its possession of bearish put options pertaining to the SPDR S&P 500 ETF Trust and the Invesco QQQ Trust, as of the conclusion of June. These ETFs mirror the performance of the benchmark S&P 500 and Nasdaq-100 indexes, respectively. Burry’s options translate to potential gains if these indexes experience a decline.
Though Buffett hasn’t explicitly forecasted a stock market crash, his strategic maneuvers have involved divesting a net total of $33 billion in stocks and augmenting Berkshire’s cash reserves by $38 billion across the past three quarters. Armed with ample available funds, Buffett is poised to capitalize on undervalued stocks and potential acquisitions in the event of a market pullback. This mirrors his actions during the Great Recession, when he successfully negotiated agreements with entities like Goldman Sachs, General Electric, and numerous other corporations.
Regarding Burry, he has expressed his views on an unprecedented bubble and forewarned of an impending “mother of all crashes.” His recent short positions have garnered significant attention, drawing parallels to his past achievement in foreseeing and benefiting from the collapse of the US housing market in 2008. Similar to Buffett, Burry identifies as a value investor with a knack for identifying undervalued enterprises and capitalizing on market downturns.
Kiyosaki asserts that Buffett’s accumulation of cash and Burry’s strategic bets against market benchmarks reflect their anticipation of an imminent stock market decline. While Buffett might have encountered a scarcity of compelling investment prospects, and Burry could have been safeguarding his portfolio, it remains plausible that both perceive the stock market as overinflated and on a trajectory toward turmoil.