Warren Buffett: I bought $12b. of stock after Trump won
The failure of Warren Buffett’s favored candidate to capture the White House has not dimmed the billionaire’s appetite for stocks.
Buffett revealed that he has bought $12 billion of stock for his company, Berkshire Hathaway Inc., since Republican Donald Trump beat Democrat Hillary Clinton in the November 8 US presidential election.
In an interview with talkshow host Charlie Rose that aired on Friday night, Buffett suggested that Berkshire’s postelection stock purchases overall were even higher, reflecting stocks that his deputies Todd Combs and Ted Weschler bought.
“We’ve, net, bought $12 billion of common stocks since the election,” Buffett said. “The guys that work with me, the two fellows, they probably bought a little bit or sold a little bit too.”
The speed with which Berkshire is buying stocks is unusual. It has spent in fewer than three months roughly half what it spent on equities in the three years ending September 30, 2016.
Buffett demurred on whether Berkshire has added to its stakes in the four largest US airlines: American Airlines Group Inc., Delta Air Lines Inc., Southwest Airlines Co. and United Continental Holdings Inc.
Berkshire revealed those stakes in mid-November, surprising many, given Buffett’s long aversion to the sector.
Asked why Berkshire dove in, Buffett said: “It was in large part my decision.”
By February 14, Berkshire will likely disclose some of the stocks it has bought in a regulatory filing listing most of its US holdings as of yearend.
The Omaha, Nebraska-based conglomerate owned $102.5b. of equities as of September 30, excluding its stake in Kraft Heinz Co.
US stocks rose after Trump was elected, reflecting investor optimism that his policies might boost economic growth, aided by a Congress also under Republican control.
Trump is unlikely to reach his goal of 4% annual growth, Buffett said, but growth at half that level would over a generation add $19,000 per person to real gross domestic product.
“Two percent will produce miracles,” he said.
The US economy grew by 1.6% last year, the lowest since 2011.