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The S&P 500 dipped by 19% in 2022, but stocks still don’t seem cheap to Charlie Munger, Warren Buffett’s billionaire partner at Berkshire Hathaway.

“In my whole adult life, I have never hoarded cash, waiting for better conditions,” Munger said in an interview in late 2022. “I’ve just invested in the best thing I could find.”

Yet he acknowledged that Berkshire Hathaway is sitting on billions of dollars in cash. The reason isn’t that Buffett and Munger think they can wait for stocks to get even cheaper — the wager known as “timing the market.”

Instead, Munger said bluntly that Berkshire isn’t buying anything “because there’s nothing we can stand buying.”

It’s an amazing statement. Even with a stock market downturn that would presumably result in dozens or hundreds of stocks trading on sale, at bargain-level prices, the world’s most famous value investors aren’t remotely tempted to dive in.

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