Buffett’s Next Move
This week, Berkshire Hathaway announced positions in 5 Japanese companies with significant exposure to metals and energy.
One company in particular, Sumitomo (with roots that date back to the 17th century), increases Buffett’s exposure to precious metals.
Last week I speculated that Buffett would continue looking for bets in the PM space. I am no Oracle - but the $546 Million bet on Barrick was a hint. For Berkshire to find meaningful exposure to precious metals he will need a diverse and creative approach.
Buffett is sitting on $146 billion in USD. With Jerome Powell devaluing the currency as fast as mechanically possible, I’d imagine Buffett is looking for options.
An interesting bullet point in Buffett’s announcement is that the 5 companies he collectively invested $6 billion into are Japanese. Buffet has built Berkshire on being long America - he owns only a handful of companies outside the US.
As Goes Ohio…. So goes the Nation?
This week the Ohio Police and Fire Pension Fund approved a 5% allocation to gold in an effort to diversify the portfolio and hedge against inflation.
These headlines raise eyebrows today, but I don’t think they will for long. The ultra-conservative, long term money is looking for security.
It’s telling that pension funds (and there will be more) are significantly increasing their gold holdings - they are looking for a bit of sovereignty with a generationally respected, borderless asset.
The Sovereign Mind
On my YouTube ChanneI I talk about the importance of the Sovereign Mindset (also the title of my podcast, releasing this month on Spotify and iTunes). The Sovereign Mindset accepts that you are your only keeper.
Put on your life jacket first. You can’t help anyone if you are drowning.
It’s up to you to take control of not only your wealth - but your health, well being, family, and future. I think about my Canadian pension as often as I consult the Health Canada Food pyramid. No thank you, I’ve got this.
This Weeks Video
This morning I published a video with fellow investor, newsletter writer and YouTuber Mark Moss.
Mark is a successful entrepreneur and real estate investor. He was early to the table on bitcoin and now he is very active in the gold sector.
We talked about the concept of sovereignty, some leading indicators he is watching, and how best to protect capital gains in the speculative market.
Watch our conversation here