Robert Kiyosaki, author of the world-famous best-selling book, “Rich Dad Poor Dad,” diagnosed that “investment guru” Warren Buffett and Michael Burry, the real-life protagonist of the movie “The Big Short,” are waiting for a stock market crash.
According to Business Insider on the 16th (local time), Kiyosaki said in an interview that day, “Warren Buffett and Michael Bury are waiting for stock prices to collapse and become cheaper.” revealed
He said, “Buffett has $147 billion in cash and 안전놀이터has invested in short-term Treasuries,” and “Michael Burry is shorting the market right now.” Buffett’s Berkshire Hathaway net sold $8 billion of stock last quarter and slowed its share repurchases. As a result, Berkshire’s total cash and Treasury debt rose 13% to a record $147 billion.
Bury invested most of its portfolio funds in put options on the SPDR S&P 500 ETF ( SPY ) and Invesco QQQ ETF ( QQQ ) in the second quarter, betting $1.65 billion (2.14 trillion won) on a decline in the US stock market.
Buffett hasn’t predicted a stock market crash as explicitly as Burry, but over the past three quarters he’s net sold $33 billion of stock and boosted Berkshire’s cash holdings by $38 billion. A master of bargain buying, Buffett now has enough cash to deploy on discounted stocks and acquisitions should the market decline.
“They expect stocks to plummet, so Buffett is betting on the decline of the S&P 500, which is hoarding and discarding cash,” said Kiyosaki. Buffett may have simply had little buy-in value and was hedging a throwaway portfolio, but it’s quite possible that he saw the stock market as overheating and in trouble.
“I just have to wait for these people to let the market crash and then watch it go back in,” Kiyosaki said. “A lot of money is being hoarded right now.”
Meanwhile, both Buffett and Bury are value investors who excel at finding deals during market downturns. Buffett is famous for making low-priced deals with Goldman Sachs, General Electric, and many other companies during the 2008 financial crisis, accurately predicting the financial crisis, and making huge amounts of money by short selling.