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Charlie Munger's Cash Stash: Why Billionaires Aren't Biting on Bargain Stocks

By WOM

April 28, 2023

SUMMARY

  • Munger and Buffett not investing, despite 19% dip in S&P 500
  • Berkshire Hathaway sitting on billions of dollars in cash
  • Ordinary investors have access to startup investment opportunities

So, the S&P 500 went on a 19% nosedive in 2022, but that doesn't mean Charlie Munger, Warren Buffett's billionaire buddy at Berkshire Hathaway, is convinced stocks are a bargain right now.

Charlie Munger spilled the tea in a 2022 interview, saying he's never hoarded cash waiting for better times. He's all about putting his money into the best investments he can find. But here's the catch – Berkshire Hathaway is currently sitting on stacks of billions in cash. It's not that Buffett and Munger are waiting for stocks to go on an even bigger sale. Nah, the truth is, they just can't find anything worth buying.

Now, that's a wild statement, right? You'd think a stock market slump would mean a buffet of tasty bargains for the world's most famous value investors. But nope, not even remotely tempting.

The thing is, big finance names like Berkshire Hathaway have certain limitations. By law, they can't just go around buying more than 5% of a company without letting the Securities and Exchange Commission know and dealing with a whole bunch of red tape. This means Warren and Charlie can't really play around in the world of microcap investing without jumping through those hoops.

However, for the average Joe, it's a different story. Startup investing, once a members-only club, is now open to everyone. Platforms like StartEngine let regular folks invest small amounts in high-growth startups, capitalizing on the high-risk, high-reward nature of the game. With a bunch of startups to choose from, even one big win can give your portfolio a serious boost. So, while the big players may be sitting on the sidelines, there's plenty of action for us little guys.


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