Why Warren Buffett Does Not Trade Commodities

[tbates]

It’s amazing that you can ask Warren Buffett just about any question and he has an extreme depth of knowledge about it.

[spiroclimb]

The problem with oil it's too politicized. Anything or anyone or any country can screw with it.

[kingkang]

That was some self-aggrandizing comment/question

[wilfriedvomacka]

She went to Berkshire shareholder meeting to ask a question about trading oil?! 🤦‍♂️

[leswhynin]

I don't understand why someone would ask this question at a Berkshire meeting. It's like bragging about gambling winnings

[elgatomoscato]

I think the short answer is to keep your current holdings and deleverage based on innovation that reduces oil dependency. If production is the same or higher and inflation is consistent, hold until that changes

[paulrath]

In the last 2 years, Buffett has had positions in Chevron and Barrick Gold, and from his comments, he clearly knows a lot about oil production and drilling.

[ralphpeterson]

Interesting content, videos like this and insight from an expert goes a long way.

[larryhorowitz]

When considering an asset for investment, it makes some sense to zoom out and look at a long-term price chart. If the asset just goes up and down, it may take significant skill to make money trading it, and not be sensible to buy and hold the asset. If the asset goes up over long periods of time, like stock indices tend to do, buying may be more sensible, and you can trade around a core position if you are skillful.

[TheWeeklyCommodity]

Well one hand it's just common sense like how he put it "Physical resources are finite" so it doesn't really matter the commodity is if you go long and you did so a few years ago you'd be a billionaire today.. Look at cocoa, cotton, oil, gold, silver etc they all have gone up. So if you bought low and early enough, then you couldn't go wrong if you tried.

[ethangroat]

People with an edge in commodities are people with a very very good understanding of economics and a lot of information about the markets, and can get in and out fast. People with an edge in stocks know that the company makes good products and has good management, and only needs to know maybe a little bit of economics. When you trade commodities, you ARE the company, you don't only own the company. It's a lot of work, but worthwhile if you really do have an edge.

[beetfarmlabs]

Buffett wasn't known for being a trader, he is an investor. I doubt she is making money in oil by buying and holding.

[D.ManuelIBoss]

Well he's got a point, but maybe in this particular time, commodities can be (just a thought) a good idea, what you guys think?

[EricFrog]

There are more inefficiencies to take advantage of in the equities market versus commodities.

[georgewilliam]

There is a time for everything he took a position on Silver as well and they admitted to trading in the 90s .

[Navak_]

he says it's too hard to predict commodity prices. i dunno man, sure it's hard to predict whether a resource will go up or down but at least i can understand its usefulness and therefore its demand. compare that to, say, a tech company. what do i really understand about how this tech company makes its money? how can i really claim to understand its usefulness? to me commodities seem far less opaque than tech stocks

[vishalkhanna]

Is NATURAL GAS AN 3 EXCELLENT BUY FIR THT $5

[crushingthegame]

there was never was, never has been and never will be a shortage of oil. It's a natural earth process and will never stop.

[larryclark]

A very smart man when it comes to finance. I need to listen to him more. 😎

[tristan]

i know a lot of people who make great money in oil but theyre just good traders who can make good money in any market