Summary List Placement
Chamath Palihapitiya could be the next Warren Buffett, according to investor Josh Brown.
“He has that aura about him,” the Ritholtz Wealth Management chief said on “The Compound.”
Like the Berkshire Hathaway boss, Palihapitiya excels at sourcing funds and has a strong track record.
Visit Business Insider’s homepage for more stories.
Billionaire investor Chamath Palihapitiya might just be the next Warren Buffett, investor Josh Brown said on “The Compound” YouTube channel this week.
“I think he’s the new Buffett,” the Ritholtz Wealth Management chief and “How I Invest My Money” co-author said. “He has that aura about him.”
“He’s not there in dollar terms yet, but he seems to have figured out a lot of things before other people and he’s executing very well,” Brown added.
Read more: Corporations rushed to address the Capitol riot and political donations. Here’s how those moves reflect the rise of sustainable investing.
Palihapitiya is a former Facebook executive, the founder and CEO of Social Capital, and a minority owner of the Golden State Warriors.
He specializes in using special-purpose acquisition vehicles (SPACs) to take companies public. He counts Virgin Galactic, Opendoor, Clover Health, and SoFi among his deals to date.
Like Buffett, Palihapitiya has “figured out how to have the zero cost of capital and the endless money coming in and everything he touches turns to gold immediately because he’s had past success,” Brown said.
Read more: Morgan Stanley says to buy these 26 economically sensitive stocks poised to outperform as oil prices spike 10% by year-end
Buffett is never short of funding for investments thanks to his Berkshire Hathaway conglomerate. He takes the cash thrown off by subsidiaries such as See’s Candies, as well as the “float” (the difference between premiums and claims) from Geico and his other insurance businesses, and invests it elsewhere in the company, or in public markets to generate higher returns.
Moreover, many investors trust Buffett’s decisions and follow him into the stocks he buys, bumping up their prices and making him more money.
Palihapitiya has also shown a knack for raising and deploying funds, and his future SPACs are likely to benefit from the halo effect of his past ones.
Read more: A former journalist who worked his way up to become one of Wall Street’s best tiny-company stock pickers tells us the 4 pillars of the approach that’s beating 98% of his competitors
It’s not too surprising that Palihapitiya is drawing comparisons to Buffett, given he’s modeling his company on the famed investor’s conglomerate.
“My ambition is to be our generation’s Berkshire Hathaway,” Palihapitiya told Fortune last year.
He envisions Social Capital as “a Berkshire, a holding company that, instead of holding Gillette and Coca-Cola and McDonald’s, will hold technology businesses.”
Join the conversation about this story »
NOW WATCH: July 15 is Tax Day — here’s what …read more
Source:: Business Insider
Redemption produces playoff clincher as Packers put away Rams.
Mega Millions Jackpot Rises To $850 million, 3rd-Largest Prize Ever | TODAY