Buffett's Missing Investment Appetite
Warren Buffett, along with several other billionaire investors have chosen to abstain from entering the market and prefer to hold assets in cash. With conglomerates and billionaires holding off their investments in 2020, some view this as a signal of famous investors losing their touch, while some also sees a potential stock market crash these billionaires are avoiding in light of questionable economic status. Numerous market players speculated that Buffett would deploy cash in a market undergoing a lot of correction, whereas oddly, Buffett preferred to save cash as if he suddenly lost his 'investment appetite'. One main factor that shows why the 'Oracle of Omaha' refrains from entering the market is induced hallucination, considering a lot of people stayed at home and choose to invest. The contrarian moves of newcomers bother Buffett as he doesn't condone mindless purchase and speculation. Mark Cuban, owner of the Dallas Mavericks franchise, explained more about Buffett's sentiment that the breathless rally will end when the magnitude of the pandemic breakdown is extensively known to the public and could possibly lead to a future market bubble burst. Moreover, reacting to current industry player motives, Howard Marks -- CEO of Oaktree Capital instructed to not look at buying stocks as a gambling game because reckless trading is not healthy to the whole community.
Amidst the current stagnant situation, Buffett chose to conduct his only major purchase by acquiring Dominion Energy for $10 billion. The step that Buffett took was unexpected, considering that many people are avoiding ener