HK stock market trader's review

WarrenBuffet's $14B bet on the global stock market

Today's biggest news is no doubt about WarrenBuffet's bet.

Buffett's Berkshire Hathaway (Research) has sold clients insurance protection against a drop in four equity indices. The contract last for 15 - 20 years. If the stock market index drop by 30%, he would be lossing $900 million to his clients.

Now it has has come to the point it is very hard to find good stocks that are under-value. Buffet is well-known for extracting and investing on these stocks. He has invested in 857.HK, buy in around $2-$3, price now ? over $8 already. Stocks often will increase by times after he has bought in, partly revealing the real potential of the stock and partly a star effect where small investers tends to follow him.

But since last year, buffet has started to sell US dollar, but last year USD has been strong most of the time. This is a small dust in his legend. But who knows, in the long run, I also believe USD would turns weak after the interest hike has ended.

posted by SSY @ 9:52 AM