According to the article “Buffett's $55 Billion Gamble is a Bet on U.S. Collapse, Warns CIA Economist”, a number of billionaires have taken a cash position on their holdings at the expense of stocks.

The article details the transactions as follows:

According to a new SEC filing, Buffett is sitting on $55 billion in cash through his company Berkshire Hathaway. This is highly unusual behavior from a man often called "the world's greatest investor."

It's the biggest cash hoard the company has ever amassed, in the 40 years he's been in charge.

Jim Rogers recently admitted to Yahoo! that he is staying far away from U.S. stocks.

New filings also revealed billionaire George Soros' massive short position on the S&P 500.

The alleged reason for the cash hoarding and shorting of the stocks is that these billionaires have inside information on a forthcoming and massive financial calamity.

According to Jim Rickards, the CIA's Financial Threat and Asymmetric Warfare Advisor, they are taking emergency measures now before a historic economic meltdown strikes - one he, and many of his colleagues at the U.S. Intelligence Community, fear is unavoidable.

"Everybody knows we have a dangerous level of debt. That's no secret," he said. "But all signs are now flashing bright red that our chickens are about to come home to roost."

Have these billionaires taken a cash (or contra-stock) position on their holdings?

As an aside, it would be interesting to reference any explanation of their position and strategy in the light of an expected massive impending U.S. financial calamity.

  • 2
    Cash is the natural position for those who think interest rates will rise, driving down the prices of alternatives which are sensitive to interest rates such as bonds and equities. It rests on the assumption cash will hold its values, i.e. that there will not be hyperinflation. You will in fact find that Berkshire Hathaway also holds those alternatives, especially equities.
    – Henry
    Commented Oct 24, 2014 at 7:23
  • @Henry: Do you think the question should be reworded to reflect the holding of cash in the ordinary course, with words like e.g. "an unusually high cash position"? Also, just a concern about the claims: These folks are predicting a federal calamity, so one would think they would put the money in hard or foreign assets, not US bonds (that may be restructured) or cash (that may inflate). Unless they expect everything to crash, and the last man standing to be the US dollar; but even predicting a scorched earth scenario you would expect massive uncertainty and hence lots of hedging. Commented Oct 24, 2014 at 23:35
  • 1
    Not particularly. The claim seems to have been made. I do not know what the particular billionaires think, but it seems likely that they think bonds and equities are currently overpriced. Whether a correction in those two markets would be an economic collapse is a question that is beyond me.
    – Henry
    Commented Oct 25, 2014 at 8:45


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