Warren Buffett: The BOND King? (17% per year returns)

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Time stamps:
0:00 - Buffett the bond investor?
1:28 - Clip (2015): Buffett would SHORT bonds?
4:16 - Betting on bonds
5:09 - WPPSS bond investment analysis
11:52 - Buffett's bond returns
15:15 - Lessons for investors

Enjoy :)

Disclaimer:
I am not a financial adviser. This video is for education and entertainment purposes only. Seek professional help before making any investment decision.​

[InvestingwithTom]

Have you ever made a big bond investment?

[calebwert]

I think the only way to make a decent return on buying bonds is by specialising in junk bonds. Since buying any other type of bond isn't very attractive at the current yields.

[vemundaarnes]

I really enjoy these investment case videos.

It's a lot more interesting to look at why these investments made sense at that time rather than why they made sense in hindsight.

[TheSecurityILikeBest]

Like Buffett, I find it’s less common to find great bond deals than with equities but if you keep your eye out and put in the effort you can occasionally catch them. CXW in 2021 was selling short dated bonds at 70% surrounding negative media attention that were clearly payable. I read the covenants and got a quick 20+% pop within 3 months plus fat coupon. Shorted long dated treasuries in 2022 as well and got a 2x. Be careful out there. Doing proper homework is key.

[johnnycomelately]

Tom, what did Berkshire Hathaway do regarding gold over, say, the last 5 years?

[theunderdoginvestor]

It wasn't quite the slam dunk it appeared. The bonds, if i recall, were guaranteed by the municipalities, which seems like a great deal. But they sued and the guarantee was deemed not enforceable by the Washington state supreme court, which made their discount understandable. I don't remember if the US Supreme Court or something else happened, but the BRK purchased bonds eventually paid off.

Reminded me recently of Berkowitzs purchase of Fannie Mae Preferred stocks. Legally, it looks like he should have won the case, but the court sided with the government and stiffed the preferred holders.

[TheRenegadeScrew]

It was Keynes not Paul Samuelson who said "when the facts change....". I suppose Samuelson was probably making reference if he said it.

[VTuber_Central]

I thought buffett didnt like bonds also as a newbie looking at them from what i can tell good paying ones are dangerous and you can lose alot of cash and good safe ones eg government bonds are BAD interest that have poor pay outs also arent bonds bad in high interest rate climates?

[nice]

Good video.. but too long. Needed editing

Repeating same thing multiple times

[stillcrazyhaha]

I thought that opening quote was Keynes

[Emperor_Sauron]

Any thoughts on SRG move today? Is Eddie unloading some more shares. Lol

[RJ-ryqu]

I remember buying bonds /pref shares on the nzx and asx post gfc with annual yields of 20-30% pa

[johnnycomelately]

re WPSS, they must have known what caused the default in 4 and 5 and what the residual value and risk was in 1, 2 and 3 ??