SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Gold Price Monitor
GDXJ 117.61+3.0%Dec 19 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: long-gone who wrote (1349)8/24/1997 11:03:00 PM
From: Richnorth   of 116815
 
We hear from a credible source:
that Warren Buffett is buying
zero coupon long-term
Treasury bonds on a large scale.
We picked this information
up from zero coupon bond desks at
some of Wall Street's biggest firms.
Five of the biggest bond dealers
report inquiries from Berkshire
Hathaway, an account that rarely
ventures into bonds. According to
our information Berkshire Hathaway
has been quietly buying zero coupon
U.S. Treasury bonds in 20- to
23-year maturities since late July.
If the rumor is true, Buffett
and his partner, Charlie Munger,
may be betting on a recession or at
least a business slowdown, either of
which could drop interest rates and
thereby push up the prices of
long-term bonds. The pair rarely buy
bonds except to speculate on price
rises. Long-term zero coupon
Treasurys are a pure way of
speculating on falling interest rates.
Has the sage of Omaha
concluded that the stock market is
overpriced and long bonds
underpriced? We simply do not
know. Buffett didn't return our call.
No surprise there. His office
reminded us that he never comments
on what he's buying or selling.
In short, this could be a very
big deal, a real sign of a market top.
Or it could just be some portfolio
reshuffling in a multibillion-dollar
portfolio.
All we know for sure is that
Berkshire is buying long Treasurys.
One venerable zeros trader says
he'd never previously done a trade
with the Berkshire
account--evidence that the giant
investment company could be
spreading business around to
disguise the size of its order. "You
don't get much information from that
account," our source says.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News