Here’s Where to Stick Your $1,400 “Stimulus” Check

Andy Snyder|March 12, 2021

Golly… is it any surprise that the same day as Washington passed the $1.9 trillion stimulus bill, Warren Buffett’s wealth odometer finally rolled over the $100 billion mark?

Is it any surprise that at the same time as the sixth round of stimulus in 12 months hit the president’s desk, the Dow notched another record high?

And, oh my, should we be surprised that the nearsighted folks in D.C. are running victory laps as they say the $3,700 in net benefits the average American will see from this deal will cut the nation’s poverty rate by a third… well, at least for this month?

Let’s be clear… Self-reliance must be the goal of every person on this planet.

An economy that depends on monthly payments to parents… debt forgiveness… and handouts just for helping to jump on the chest of a dying marketplace is not healthy.

And the very best way to ensure you don’t succumb to this 21st-century version of national debt-fueled indentured servitude?

Follow Mr. Buffett.

The Rich Get Richer… and So Can You

We’ve written about it before. It’s the greatest form of stock market alchemy in history.

Once opposed to it, Buffett has seen the light and the dollar signs.

Let us show you a moneymaking chart…

The chart shows the number of outstanding shares of Berkshire Hathaway (BRK) – Buffett’s oh-so-deep honey hole.

For years, the number of shares on the Street hardly budged. Then again, the same was true of its share price. Berkshire has infamously underperformed the S&P for the last five years.

The rise of the S&P, of course, has been driven largely by share buybacks. We’ve cited the evidence numerous times in this column. It’s no surprise that if Buffett wasn’t buying back, he wasn’t keeping up.

But he finally gave in last year.

He ordered his firm to spend a record $24.7 billion of its cash buying back its own shares.

The stock finally started to move.

The trend has continued into this year. Some $4.2 billion worth of Berkshire’s corporate cash went to buybacks in just the first six weeks of the year.

Shares are up 15% year to date – firmly beating the market’s 3% climb.

Is Buffett’s big win a sign that the economy is any stronger than it was a year ago?

Is it proof that he remains the ultimate stock picker?

Or is he simply doing what so many other rich guys are doing… and taking full advantage of all the free money that’s floating around these days?

You know the answer.

Buy Now

Again, it is no coincidence that at the very same time as Congress put its stamp on a $1.9 trillion stimulus bill, news outlets report the world’s wealthiest have seen their net worth rise by $1.8 trillion.

It’s funny how that works.

But here’s the good news.

Buffett… Bezos… Zuckerberg and the like are not doing anything you can’t do. They don’t have access to a different money-printing machine.

Nope. They’ve tapped into the same one all of us can – and must – tap into.

They own stocks… lots of them.

There is no doubt. The Dow is going to 100K faster than most folks think possible.

All that mailbox money that’s about to get shipped out will not stay in the hands of its recipients for long. Just as Congress intends, it will go straight into the pockets of the nation’s biggest companies.

We’re crazy if we don’t own them.

If you get a check, use it to buy stocks.

It’s the simplest, most obvious trade in modern history.

Did you start investing – or start investing more – in the past year? Let us know at mailbag@manwardpress.com.