There are other, more important, reasons for BH's purchase of General Re. Buffett has, for a long time, been in the reinsurance game. Many of his reinsurance holdings have not been in good condition, and General Re offered an opportunity to alter that position.
Is he shifting? He has been since his purchase of Treasury Bills last November, and his purchase of silver. However, he is NOT OUT of equities, by any stretch.
The market conditions are not too dissimilar, and in many ways better, than last Nov/Oct., so I don't think this is a long-term correction. If anything, although the market has gone lower than I thought it would, it is currently in a wait-and-see pattern that will change quickly, and soon. I expect for the better. I never thought the market would hit 9300 this year. As a result, I missed alot of gains. I saw an 8300 top. By the same token (and I could be wrong again), I don't see a major downdraft, now that profits have been taken. |
