It is no news that Warren Buffett didn’t buy any stocks in the first quarter of the year. Warren has been getting a lot of media attentions recently as people are concerned about what to invest in and what not to invest in. Being an Oracle in the investment world, a lot of people are looking up to him for investment strategy as well as traders plans to use his investment portfolio to make lots of money since his investment will be followed by a rise in the stock price as other people will want to invest in the same company or sector. Since the pandemic started, Warren has been selling a lot of stocks and the airline industry can attest to this but after a long pandemic break, the Oracle of Omaha just made his first investment and we hope it is a good investment.
As an investor that Warren is, I knew it would be a difficult decision sitting on billions of dollars doing nothing with them. If an investor would have a problem with cash lying low, what would he then do with $137,000,000,000 cash; invest it is the next step. Recently, Mr. Buffett just made his first move to invest $10 billion into an energy and natural gas company (Dominion Energy) but in hi investment, he is buying the transportation (pipelines) and storage system for the natural gas. How is warren going to make money from this?
It is true that the energy and aviation industry suffered a lot during the downtimes caused by the pandemic, now that the economy is opening gradually, the aviation industry might be suffering for a while, but the energy industry might have a saving grace especially the part Warren is investing in. everyone will need natural gas for energy so buying the storage and transportation system to Dominion Energy means Warren will be getting paid for transportation of natural gas as well as storage of the gas from Dominion Energy.
My Say
Although, Mr. Buffett is an investor that a lot of people look up to, this doesn’t mean that you should go invest in one energy company you aren’t sure about. A lot of energy companies have gone bankrupt during this pandemic so do not just invest in any energy company because Warren Buffett did the same thing. If you want to invest like Warren Buffet, you could just invest in his company Berkshires Hathaway instead of investing in a random company you aren’t certain about also, you could also invest in ETFs.