Billionaire Warren Buffett is well known for supporting liberal causes like raising the minimum wage, and increasing taxes on the rich. That didn’t change much during the 2016 election cycle, as Buffett supported Democratic candidate Hillary Clinton’s presidential campaign. In fact, Buffett was so convinced that Clinton was the right person for the job, he donated the maximum allowable to a super PAC that supported her candidacy.Despite Buffett’s best efforts, Donald Trump ended up winning the election. And how did Buffett react to the loss? He bought $12 billion in stocks.
From Reuters:The failure of Warren Buffett’s favored candidate to capture the White House has not dimmed the billionaire’s appetite for stocks
Buffett revealed that he has bought $12 billion of stock for his company Berkshire Hathaway Inc. since the Republican Donald Trump beat Democrat Hillary Clinton in the Nov. 8 U.S. presidential election.
In an interview with talk show host Charlie Rose that aired on Friday night, Buffett suggested that Berkshire’s post-election stock purchases overall were even higher, reflecting stocks that his deputies Todd Combs and Ted Weschler bought.“We’ve, net, bought $12 billion of common stocks since the election,” Buffett said. “The guys that work with me, the two fellows, they probably bought a little bit or sold a little bit too.”
The speed with which Berkshire is buying stocks is unusual. It has spent in fewer than three months roughly half what it spent on equities in the three years ending Sept. 30, 2016.
It’s interesting Buffett claimed for over a year Hillary Clinton was the best candidate for the economy, only to turn around and buy $12 billion in stocks the second Trump won the election. The investor bought up more stock in three months than he had in the previous three years combined, indicating he knows what the election of Donald Trump means for the U.S. economy.Despite his support of Clinton, Buffett is reaping the rewards of a Trump presidency, as stocks have skyrocketed since Trump’s election win. And now that Trump has actually entered office, the billionaire has shown no signs he plans to sell off those assets.
As with many Hollywood celebrities, Buffett has a severe case of “do as I say, not as I do” syndrome. If you want to know what these people really think, just follow the money. In the case of Warren Buffett, the smart money was on Donald Trump.
[Note: This post was authored by Michael Lee. Follow him on Twitter @UAMichaelLee]