Dear Friend,
I want to know what you think. I’ve already given you my opinion.
On the one hand the media and the talking heads are saying …
“Worst Year Ever for Buffett!”
“Berkshire Profits Plunges 96% on Stock Market Bets”
Is the magic finally gone?
Is the sun setting on the track record of the man almost universally recognized as the most successful investor of all time?
On the other hand you have the single greatest investing track-record in history.
Which one do YOU think it is? Post your comment below I’d love to hear what your thoughts on the subject are. Even if you’re not sure let me know, just let me know you’re alive.
Warmest Regards,
Charles Mizrahi,Editor
Hidden Values Alert
No, he has not lost his touch. Let’s see how he comes out of this recession - on top, I bet
No He Has Not. His stocks just got caught in the market drop. It did not matter what anyone owned, most stocks fell from 40% to 90%.
There were no save havens.
I think he misjudged the rapidity and depth of the fall in the market. DJH,
Mr. Buffet, Does NOT have a “MAGICK WAND” He Simply Does What HE says. “I INVEST IN GOOD COMPANIES WITH GOOD MANAGERS”
HE, NOR any other Investor of HIS quality, caused this “MESS’ ,IT was caused in part by “STUPID, GREEDY UN KNOWING” “JERKS” both in Washington ,and in the Business Sector (of Wall Street and Main Street),
Some that want to Practice “THE LIBERAL DOCTRINOF FAIRNESS FOR ALL” and Some that JUST wanted the MONEY AT ANY COST ! !
Mr. Buffet, and The Rest of US will be OK - - -IF and WHEN WE CAN RESTORE COMMON SENSE,,AND INTEGRETY TO WASHINGTON and The BUSINESS SECTOR ! !
Keep in mind that Buffet has never been mistaken for a Short Term Investor.. The number are Short Term on paper and like everyone else, if the Feds are handing out free money, why not get in on the spoils..
I think he much smarter than meet the eye.
Warren Buffet warned the world about CDOS and then invests in them??? WHY. isnt that stupid?
His touch is Gone! This Depression was foreseeable years ago, and Mr. Buffet tried to act more like a Treasurer than an investor. Foolish & Costly.
No he hasn’t lost his touch. I’m sure his stocks are down, but dividends are still paying and longterm prices will come back. ABS
No, Buffett hasn’t lost his touch. For one thing, he takes a long-term view re: investing.
Those who look at only short-term results fail to understand or reject Buffett’s approach to investing. They’re impatient & immature.
They’re certainly not the type of person to heed his advice to “buy stock in a great company & hold it forever.”
The answer is obvious. Many investors have done well in the longtime Bull market, taking advantage of retracements to average down. He hasn’t lost his touch for that kind of market, however, he clearly missed the fact that a major trend change was taking place. Many of us saw the trend change coming, and were able to forecast it very accurately. Buffet’s good, but he’s not good at this kind of market move, obviously.
Ramsay- If Warren B. lost some money he is smart enough 2 get it back when the recovery comes about .He has gone thru this kind of recession 2-3 times in his lifetime & he like most others who have some sense know that the market comes back stronger than before the recession.
hes in it for the long term buying up stock,because we need to sell just to eat and pay the mortage,this was the plan of the elite world order from day one ,,final resting place in a lake of fire with bill gates and all the crimals,is my hope for them all,judgement day soon i hope,checking of the souls by the real king.
Buffett got caught by the overall market fall and by the bets he took regarding future market indexes. Using mark to market rules the index bets showed large losses which are included in his results. If we are in for a Japanese style multi decade slump then the bets will show huge losses, but if the markets recover in the next few years and continue in their above inflation gains then the bets will show good profits.
Time will tell. I’ll continue to own BRK/B. I still have confidence in the old guy.
I would not look at what he has lost, I would look at what he has been buying -cheap and by the thousands. mel
NO WAY, HE IS INVESTING IN THE BEST COMPANIES THAT HAVE TAKEN A HIT LIKE THE REST OF THE MARKET… WHAT WE HAVE MIGHT NOT COME BACK BUT WHAT HE HAS WILL
Everybody has loses their touch when a recession hits.
Warren Bufftt’s genious lies in doggedly pursuing the best stocks with the lowest cost and highest valuations and potential, and then monitoring their management. This works consistantly over time. From time to time most all stocks will fall during extreme downturns and this is his current situation. The basic value remains in his portfolio and he will recover faster than most of his competitors who seek hot sectors or play the swings in the market. In the long run value based on profit and substance will carry the day.
As a Rhode Islander reminds me of Royal Little in the 60s and 70s the King of the conglamorite phase of investment history. He started s mutual fund..St.Regis Fund that flopped. Everyone has their day and their day of recogning.
JW
Why pick on Buffett, he knows that the market moves two ways.Despite the inevitable optimists who refuse to believe that simple truism, markets will still, continue to move up and down. It’s simply part of the capitalist system. Let those who don’t like the system move to China or to Russia where things only move but one way all the time and that is downward. Henry
As a Rhode Islander reminds me of Royal Little in the 60s and 70s the King of the conglamorite phase of investment history. He started a mutual fund..St.Regis Fund that flopped. Everyone has their day and their day of recon ning.
JW
Yes He has missed it. GM Started 5 years ago selling cars with NO INTEREST. Just pay the low price. It killed Gmac credit with no income. GM owed more debt than Russia when they went broke>.Most US companies have Years old leadership thoughts. Times change and your vision must change or you will not suceed.
Look at the bonuses paid to the leaders of companies that sent their stock to the low dollars or into bankrupt
status.
I hope for his investors that the market comes back someday.
I am sure Warren Buffett has not “Lost his touch.” Everyone is getting slammed right now, without exception. And I am going to guess that he saw this coming. I can’t imagine who wouldn’t. I’ve been expecting this for about 35 years.
Don’t count Warren out. When the market corrects Warren will once again be at the top. The turnaround may already have begun. He buys quality and solid long term investments with excellent management in place. He buys and invest in companies not just a stock deal. Time will tell and my bet is he will reward as he always those that stay with him.
I`ve been investing in residential, rental real estate since 1992 in Montreal Canada. My best acquisitions were made between 92 and 98 when prices were low.
I am certain that Warren Buffett is presently taking his bird`s eye vision, and acquiring assets at 5 cents on the dollar, like he`s been doing all his life, awaiting growth, because when the market rebounds (in less than a 3 year window), the $1 assets acquired at 5 cents will bring his net worth to $250 billion+. He has counted on, expected, and planned for this type of crisis.
Robert
Mr Buffet was a huge supporter of Obama , but after huge losses, he threw Obama under the bus LOL! I guess the OLD adage still holds true ……BULLSHI* walks and money talks !
Why does Buffet need to have a net worth of 250B. How much is enough?
I’ve admired Warren for many years and one of my friends participated in funding one of his first loans. However, I think he is losing touch with the real world when he is opposition to four of the President Obama’s top programs and then says we can only have “one leader at a time and Republicans ought to follow” shows me hs is losing it! When has Buffet ever supported a “startup” comapany with his funds and really done something for the country? He just cherry picks established, but beaten down companys and rides them back to recovery.
Tom
WE WILL ALWAYS HAVE THOSE WHO LIKE TO SEE SOMEONE FAIL-THE SEE I TOLD YOU SO GROUP. THE ONLY THING THAT WILL TRULY JUDGE HIS ABILITY IS TI1ME. SO LETS SEE. I’LL BET ON BUFFETT; HIS RECORD SPEAKS FOR ITSELF.
When I obtained my Chartered Life Underwriter designation some 28 years ago my economics course taught that economies and markets tend to ebb and flow about every ten years. The current situation seems to fit this study, although certainly the 2008-2009 current experience seems more severe and recovery might take longer. Warren Buffet enjoyed much success with his expertise in investing over many years and I believe in his continuing actions as he deals with the markets. My disappointment is with the major lack of proper regulatory authority and greed of people on Wall Street, etc. which has adversely affected the entire world economy.
Get some help Arnie, Have you tried anti depressants?@arnie
This is it. The Greatest Depression in History has been set into stone. The dow will be trading at 1500 or lower by the end of 2009 or mid 2010. Freeloaders from all countries will swarm here to get the free healthcare on the backs of the only people working that would be Food, Defense Industries and GOVERNMENT KISS-UPS AND ALIKE. Oh Yes and those 5 Banks Running the World ( Goldman Sucks, Jaimie P Diamon d Morgan, Bac of Southamerica, Morgan Stanley and lets not forget the Larges clip joint on earth Citi, AIG will go by the wayside. They will have succeded in their quest of creating a two part civilation Filthy Rich and the Filthy Poor. Politico Washingtono is hell bent on getting all of our money. Remember the Democrats know whats good for you and Obama will be coming after your 401k’s and Ira’s next. Don’t u just love it when that jerk on cnbc blames the whole mess on people applying for mortgages they can’t afford.
I say shame on the banks and mortgage companies for giving them the things in the first place.
Since he threw $10 billion after Goldman Sachs I have my doubts about him.
I admired his original investment strategy: long term; companies with products he could understand; solid management he could trust.
Who can trust financial gangsters who offer “financial products”, deliberately designed so nobody can understand them?
@Vincenzo Orlandini
Right.
And shame on those “investment banks” who packaged those flimsy mortgages and sold them with huge profits to managers of retirement funds.
The man is a genius , just look at his track record, the whole world is in termoil, I don’t think he could possibly come out ahead in this type of finincial climate!!!
A few small thoughts on Buffet.
Few people held as much cash as Warren Buffet last September. Did you? His only “Mistake” if you can call it that, was starting to move back into the market before it hit rock bottom. He still has lots of cash. He is still buying.
How many will wait too long, and miss most of the rebound? Not Buffet. He is one of the few who truly has confidence in his methods. He does not change his strategy or recommendations based on the whims of the stock market.
I follow some self touted investment gurus, and am always amazed that a growth company is at the top of their recommendation list one day, and three weeks later, after a 25% drop, it is suddenly on their sell list. Do you really think the long term future of say , Potash Corp, has changed that much over the last few months? It’s price sure has, but it’s fundamental business is still the same. It still sells potash. Potash is still fertilizer. Fertilizer is still used to make more food. The human population is still growing and needing more food. Do I need to go on? I am sure that folks like Buffet have companies like Potash Corp higher on their to buy list now, than a few months ago when it was triple the price. Remember that little saying, buy low and sell high?
when opportunities arise you must jump!! since you are allready invested and the market direction is down you take your losses so you can get the largest return when the market rewards your smart choices with huge gains which then you subtract your losses to make those investments. I think he will be proven pretty smart.
No. Warren Buffet is not a short term trader–he is a stock investor, in it for the long term. Many of the stocks he owns are private stocks–not traded on any exchange. Therefore,it is difficult to place a value
on his holdings.
@Paul W.
Everyone and I mean everyone took a bath in red ink last year!! To say Mr. Buffet has lost his touch would be like saying alexander the great was thru after he had to chase down the Persian Emporer who fled his battle scene. No it is so bad out there with public perception that it will take time for confedence to rebound and the wallets will losen up and spending will return, and only then will the economy rebound. Thomas
IMHO When Warren supported Obama both he and Obama acted like they were above us, wiser etc, etc.
In the past several years Warren has created a movie star image for himself.
I will sell when the A’s get to $50,000.00 and B’s get to $1700.00. Thanks to Warren I will still be very wealthy.
Absolutely not, the world is in a financial tsunami and no-one has been immune from it, and if your as financial large as he is, you would have to be on a different planet to avoid consequenses. The judgement will be how one recovers.
This is the 2nd worst crash in history, only being “outdone” in 1931. Fear, greed and federal & corporate corruption have spiralled out of control and has caught up with them. Rumours have it the DTCC and SEC were ‘in’ on all of this over many years … eg. Madoff and the list only begins there. As far as Warren is concerned, I doubt he was caught. I suspect he’s very involved in the buying of stocks right about now. After all, everything is heavily discounted and with his market savvy, he’ll know which investments to pursue short & medium term as the market recovery will be very volatile for the next 2 or so years.
I don’t think any investor is without risk unless it would be King Abdullah. The situation that the oil elite has created from the Muslim economic system of top down finance and extreme control is now setting up the US Federal government to be in the same position as the methods used in the Middle-east.
From what we have seen from Middle-east rule, their system pushes people out of their countries on to the welfare rolls of other nations. They keep Islam as a tool for keeping a certain amount of loyalty through their faith practices by villinizing other faiths. They create terrorism as a means of financial munipulations in both stock markets as well as currency markets. Added to the cost of welfare host nations are paying, is the cost of trying to get terrorism under control. The high price of oil includes all of these factors. Islam has created this monster as a means to profit and gain power.
Washington seems to have fallen victim through the methodical purchasing of top level elected officials, Presidents.
I think Warren is very aware of what is going on. He knows he has been purchasing preferred at prices higher than any sophistocated investor could easily predict.
Warren has been paying top dollar in order to influence the future paths of these organizations. I feel Warren has been doing this out of pure patriotism.Understanding that if Washington doesn’t come clean and keeps pushing to hide their secrets, the recovery could take some time.
The control grab by Washington is a desperate measure to hide a situation that may cost this nation its way of life. Folks the position Washington has put us in is a very poor one. This is not just another day at the store.
Socialism as the conservatives worry about will be only a passing phase. We will ultimatly drift into the Islamic system of everything goes to the top dog first them filters down as the dictators wish to serve their profitability. I can not say for sure that Warren is investing wisely. It will come down to the control of the media and judicial branch of the Fed. Right now with Obama as President teaming with the Clintons, I would have to say Saudi Arabia is winning the war.
Steven Hougland
Mr. Buffet is a very intelliegent man knowing many areas to invest in. The problem lies as mentioned with greed of the investment world in banking, wall street and mainly the payoffs of our uneducated Congress and Senators in regards to economics.
They make favors under the table for favors while Greed has taken a bite our of all those deceivers mentioned. Derivatives and hedges betting against failed plans for lending money to those that should own a home. Even buffet got caught up in them and cost him alot.
Morals and conscience of mankind selling souls for a buck always ends in failure. Watching the henhouse while turning a blind eye for selfish reason of greed. The fox had an open door while selling us out, its time for the people to stand up and get rid of the deceivers one by one til their gone. Demos and Republicans whoever crossed the line. So far our government officals are getting away with it without a scar…..So Buffet is a victim of the plague that covers us all…
No one bats a 100%. It is the average that is so meaningfull. The tract record of Warren Buffet is super, and is not matched , let alone exceeded by very few. Follow his wisdom will lead to successful investing over the long pull. Herb M.
Mr.Buffet is correct, and will be exonorated. The U.S.A. & the world has seen a major shift in distribution of the symbols of wealth (money) over the past 6 - 12 months.We have not however lost any real wealth (people, land, crops, raw materials) other than Galveston,TX. When confidence in the system and it’s symantics returns, the market will rebound with vigor.
The only unknown that I am aware of that can sifnificantly delay a recovery, is if the avian influenza (H5N1) virus mutates to human to human transmission, and we we experience a global pandemic (50,000,000 deaths estimated;with closure of schools, markets, businesses,banks, roads, ports & airports ) before we are out of recession.
Hay, the big boondoggle we have now was created by
our very own government, primarily, and the greed of Wall street that was backed by our government and, you might say, forced to make loans to people who should not have had loans. Not Buffet’s fault.
The very basis of our financial mess may be traced to England, when in 1694 they created the ‘central bank concept.’ This worked for a while as the public suffered continuous losses by the printing of fiat money. Sad to say, this pernicious monetary virus jumped to our shores in 1913. The results here have been identical, i.e., The public being defrauded by trillions (quadrillions?) of dollars of their hard earned money ed while those in power, plus their cronies secured huge benefits. The concept of allowing a free market to determin what society needs/desires has been replaced by governmental decisions. All political partiess since 1913 are at fault in participating in the dollar destruction with, perhaps, the liberal elements more so. The end result will be a dollar becoming worthless, or nearly so, to be replaced by standards (gold/silver) that the central government cannot debase. Meanwhile, the present administration is pursueing, essentially ‘more of the same’ that has never and cannot work. Sad to say, collective America is facing a dpression from Mr. Market who will correct the follies of the past… a tough lesson but it appears to be inevitable.
Mr. Buffet seems to lack a truely long term historical perspective even though he has been amazingly successful over a short (relatively) time span. In the interim, until good times return, Americans will see, for the most part, what they own decline in vaule whilst what they buy increase in cost.
Government should not be a player, but the referee of a fair set of rules… read CONSTITUTION an inspired document.
Yes, I think he he has lost his touch. He did not anticipate the downturn, and there are many who think that it was 3 years overdue. On the other hand the “Oracle of Toronto” actually got out of the market and turned a profit for his investors by shorting the market. Who would YOU rather have managing your money??
Mr Buffet…His motto…buy low, sell high.
Dear Charlie,
Yes I am still alive, only by the grace of God.
More death threats came this last week. It takes a lot out of a person eventually. I know it has me. It becomes ever increasingly hard to concentrate on anything. Saudi Arabia and Washington has us between a rock and a hard place. As the market falls more Middle-east money will flow in. That is fine. If we could get Washington back on the side of the American people and new leadership in Washington, I think corporate restructuring will have to be the order of the day. I’m sure this will all have to be done under nuclear threat and possibly attack. I’m not sure at what length the crazys will stop. All I know is I want our troops out of there as soon as possible.
Steven Hougland
I think Buffett is to investing what Heifetz was to music. He is an exemplar to me and I imagine to legions around the globe. I’m quite sure he hasn’t lost his “touch”; he has always lost less than the S&P in down years and that is true now. He has never been able to sell a great company when it makes a temporary top. I’m referring to Coke, Amex, Wells etc. Unless you believe his age is the problem and (I don’t); he didn’t wake up one monday morning and become stupid; he knows what he wants and waits until the Mr. Market gives him a price that he has calculated will result in outsized compounded returns. His mentor Ben Graham used to say: “pay a little get a lot, pay a lot get little.” If return is a function of price, then that quote is still true. When Buffett read “The Intelligent Investor” in 50′ he had an epifany; when I read it in 56′, I thought “it was a simply a great read.”
Buffet has lost it! but he,s one guy that can afford to!
his billions of shares in bank stock will vaporize, this to big to fall deal is crap, they will fall, the sooner the better.
Obama is a joke, renegged on everything, those Dem thugs Pelosie and Read are working the pupet strings,
bail out for 9million homes under forclosure! forget it, nobody qualifies, the ones that do , dont need bailing out.
Obama,Cityzen ship to anyone that wants it! go directly to the welfare office,collect a check for your criminal huby and all six kids, dont worry about your aids,
He’s doing better than average if its just a recession or even a Depression. But if the dollar is obliterated so we can have the Amero on the road to world government, then he’s made a serious error in thinking the market is “down,” rather than “under attack by a Deluge.”
Even then, bet he finds an alternative medium of exchange faster than others and recovers to find himself on the top again.
Obviously, Buffet and other big shots made money out of the great confidence that ordinary investor reposed in the stock market. Now they are only waiting for the golden times to come back at least for once, get back what they lost and call it quit. So I expect that the huge revival of stock market will be soon followed by another great reversal with the big investors leaving the stock market with their bounty intact.
Buffett losing his touch? I don’t really know… but if he was a racehorse, I’d bet on him to win, every time!
I as 80% in money market in November ,2007. I ventured into commodities (20%) until April 2008 Since then 100% in money market. Just started wading into XLE , GE and RSX in small positions. How is that??
i*m live!!!!
There was a song that started out ” I was once a rich man…” Now, Buffet is only less rich!
Like the mariners a few years back who sailed when the earth was thought to be flat
so has the financial world of today been radically revolutionized.
Billions nay trillions of paper wealth will be transferred to the real and honest wealth of gold and silver.
Buffet and company along with Bernie Madoff have been dealing in illusory “wealth”.
Hotel California … no place to run, you can check out but can not leave. Buffett’s in the market, but Buffett doesn’t gamble, but he does roll the dice. When he invests its a balance of debt and equity with stop gaps for conversion to equity from preferred. The formula is exacting and the focus penetrating. Simple business model like Sees Chocolate and strong management steeped in follow through.@Nathaniel Port
Mr. Buffett had reflected with his performance that like most of the long term investors he underestimated the destructive creative greed of large investment institutions combined with lack of oversight (stupidity) of the government. We, the long term investors must be demanding that our Maddoff (SEC ex-chairman Cox and the well known Wall Street firms that created CDO, CDS, and double and triple short ETFs) be brought to justice as traitors that have destroyed US companies, jobs and long term investors in the US. Mr. Buffett has access to media and had every opportunity to expose these evil-doers for what they were and made sure that the new SEC, treasury, Fed and President acted much more swiftly and focused to stop this insanity of pouring TARP and TALF money into the system while all of these destructive vehicles are still in place. No one should exploit “good crisis” at the expense of people that are long term-investors in the US economy.
Buffett will survive; but we would all do well to re-read comments by Steve Hougland, Jon Lawrence and Vincenzo Orlandini. This whole thing was orchestrated by the Federal Reserve Powers. Until we put a stop to them our country will keep going downhill. The market will probably still get some damage so the Fed Reserve Powers can buy at the cheap. When it hits bottom, they will buy like crazy and wait a few years to bash the market again, and again and again. Please re- read the comments of the 3 I mentioned. Oh, Doc Goldschlager, don’t give the Fed Reserve Powers any more ideas. Killing off 50 Million people brings back memories of Stalin, Lenin, Hitler, and Mao Tse Tong.
Let we see what he is going to do. I am sure he has already the answer and plan. Do not under estimate him.
Is it now the right time to buy using Buffet investment style?
NO, Warren hasn’t lost his touch. I sold my real estate when I heard that he had sold his. Best move I made that year. If Warren is buying tell me what he’s buying and I might just get up the nerve to make a small investment. I haven’t bothered to read other comments because I’ve already made up my mind.
Yes
He still has a great portfolio. Some of the stocks have taken a beating like most but they remain great companies. The busineses he owns will keep going when things get back to normality. The mark to market rules on the index bets showed large losses which are included in his results and they are on paper only, no cash yet for 20 years. So when the indexes rebound there will a double whammy upward. It is a great time to buy BRK.
NO Warren Buffet has not lost his touch. The market is depressed now and the mortgage crisis is not the only reason. I know that his strategies are and have done well. You know what we should be doing in this market? Value investing, buying stock in very well run companies that are underpriced. That’s what he has made his fortune doing and what he will continue to do. Anway the company is not being run by Buffet. I thought he passed the reins. Anyway he will survive and prosper as I pray you all do. God Bless!
What goes down must come up. So I think Buffet will “wait out” his winnings.
When the universe of stocks goes down then Buffett’s stocks will impacted also. That is only logical. Dorothy
When the entire universe of stocks declines then Buffett’s stocks will do likewise. That’s just plain logic and has nothing to do with stock investing savvy. Dorothy
THE DEATH OF BUY-AND-HOLD
According to Jeff Matthews, the Berkshire equity portfolio is back to its cost basis:
“The shocker is this: Berkshire Hathaway’s portfolio of equities—the stocks such as Coke and P&G and Washington Post that Warren Buffett himself, the “Oracle of Omaha,” famously purchased over the years at bargain prices—appears, as of yesterday’s market close, to be worth not much more than Buffett’s cost.
“That’s right.
“Based on the year-end portfolio presented in the letter (and it has changed only modestly over time, but now excludes two stocks, Burlington Northern and Moody’s, in which Berkshire owns 20% and must report its holdings under the equity method,) Berkshire’s entire equity portfolio, which had a $37 billion cost basis and a $49 billion market value at year-end 2008, was, as of yesterday’s market close, worth only about $37 billion.”
http://jeffmatthewsisnotmakingthisup.blogspot.com/2009/02/this-just-in-berkshire-equity-portfolio.html
I do not believe Warren Buffett has lost his touch, the entire market is down. When the market comes back Buffett will be back. This could be seen coming several years ago, it was just a matter of when the mortgage and credit card industry would start to fail. The GREED in the banking industry, and the GREED on Wall Street finally began to catch up with the schemes they both created. Lets hope the S.E.C. and the goverment puts some people in jail before this is all over. Another big bank or brokerage house could go under before this is all over.
Mr. Buffett is doing quite fine. He is just talking too much. Now is the time to position his organization for the future and promote further NT developments for the new Society. Stop talking sooo much–You have nothing to prove.
Modern history began in 1796 with discovery of 2 public
health issues, proof of vitamin deficiency and discovery
of Cowpox innoculation against smallpox. This marked the
onset of exponential population growth and ever since,
every 3 generations major global socio-economic upheavals
have occured (1860s, 1930s and now) Corollary is that
after every Great War, a Great Depression followed.
WWII did NOT end with A-bombs, it continued a 2nd half in
the guise of a Cold War that ended in 1990s-next up is
a 2nd Great Depression more deep and protracted than 1st.
Google “Solar Mortality Theory” to read about the FACT
of LIFE the human race is sun-synchronized so that every
3 generations, when the 4th arrives, you have BOTH the
aged and newborn alive, consuming but neither working
when the 2nd generation begins to retire its the straw
that breaks the economys back and it happens in history
AGAIN and AGAIN like CLOCKWORK in modern history.
Whether or not Warren Buffet is aware of this I dunno’
but we the 2nd Great Depression is right on schedule
as “Solar Mortality Theory” predicted its start 2007.5
when the first bank failures began to occur. In short
there’s too many “changos” on the planet and that’s
the root cause of economic crises and genocide to come
Whoever said “Go forth & multiply” had their head
screwed on backwards since the Earth ain;t FLAT is it?
Look at GE, Warren bought a lot of it awhile back, I just bought 4000 shares at less than 10dollars per share, do you want to bet it will be worth half a mil in 5 years??
Peter Lynch said once that the average investor could beat the performance of the Magellian Fund if he just paid attention to what he was doing. Look at the size of Magellian and Berkshire Hathaway. Berkshire Hathaway - Buffet can no longer use his time proven methods of picking and buying stocks but he does it for his private account. If you look at the drop in total value per centage of Berkshire Hathaway and the majority of the Stock Funds I will take the drop of Berkshire anyday.
I got most of my funds in Oct and Nov 2007. My broker did not say I was crazy but she felt that I was making a bad mistake. She is #7 of her company in the USA. But 14 months later she was saying BOY you were SO right. I left money in her best China fund making 30% a year before and it was loosing me $5,000.00 a month when I sold out in fall of 2008. NO warning from her that it was doing badly.
John Davidson
Last year he made a dollar. This year he only made 4 cents. That is 4 cents more than I made.
Buffet is doing what he feels to be in the best interest for the companies in which he is vested. He wants to instill idealism in the minds of the public and particularly the stock investors. I.E.; most of his companies are heavily laden with union workers so he supports the union. I think everyone is aware that the unions were the essential downfall for the big three. And he believes in spreading the wealth because he has more than he will ever spend; so he really has nothing to lose. He wants the public to be optimistic with respect to the economy that lies ahead. In other words he wants the Stock Market to maintain a bullish agenda.
Buffet is a genius. He sees ahead and does what he has always done….set the pace. He invests in leadership, not companies. He invests in people for the reasons we should all pay attention to.
He is an investor and as described by Kiyosaki, investors can lose and still not alter their lifestyle.
Buffet purchased a networking company. Our nation is a nation founded on the spirit of true entrepreneurs. Buffet knows networking / referral marketing is the market for our future. Read the writing on the wall. This isn’t the only recession our nation has witnessed in it’s history, but history has proven that when smart people take advantage of the opportunities presented, instead of clamming up, they become the “market leaders” once the economy turns around. Oh and it will turn around!! We have just left the industrial age and entered the information age. Anytime there has been a shift, there has been economical challenges. Take advantage of it! Be the Buffet of your generation. Success happens when preparation and opportunity meet. I prepared and when opportunity knocked, I had the guts to take the risk. I invest in leadership and people.
Invest in YOU! http://www.the-team.biz/mv944365.
Buffet is in a market that he has never been in before and that is a severe depression. He’s been in “goodtimes” markets and recessions,thus, he has had no guidelines to follow so a new set of rules should have been adopted. Had this been a recession rather than a depression he would probably still be batting one hundred per cent.
Buffet rode the wave to the top and now he is riding the crash to the bottom (along with almost everyone else). Both his failure and success can be seen as a snapshot of the Dow charted across time. Has he failed? Not a chance. With that man’s acumen he should be positioning for the biggest payday and best long-run returns ever. This certainly is shaping up to be one of those golden moments to buy BH if you have missed it up until now.
CF
I think this is a opportunity to buy BH. I waited too long before. I remember when I thought $5000. a share was too high. I am buying more shares.
Buffert is obviously no dummy but, maybe a coming inflation might take a toll on his stock porfolio unless he invests in an eventual commodities boom and puts his focus on Brazil.
I agree soon will be the time to buy but beware that market has a lot of down risk potential still - and while Buffett may be one ofn the best bets around nobody can beat the demise of the market caused by previous financial mismanagement.
I agree soon will be the time to buy but beware that market has a lot of down risk potential still - and while Buffett may be one of the best bets around nobody can beat the demise of the market caused by previous financial mismanagement.
Since the morning of Tuesday(3/10/09) I am happy to see that the IWP has climbed 14% in 4 market days! This compares to an 11% rise in the NASDAQ QQQ’s showing that the market is already proving that strong balance sheets and PE’s <10 are a better investment.
I think Mr. Buffett not only lost his touch, he lost his mind. He’s said President Obama is the right man at the right time.
Mr. Buffett has only lost money if he sold any of his holdings. Paper losses are meaningless.
At his age I figure “it” doesn’t matter. He’ll never be broke, he has been generous to charity, public schools and educational institutions, and an honorable man who has worked smartly. In contrast there are about 100 Madoffs out there, plus the likes of AIG that receive bonuses for running corporations into the ground while they should be in prison. Not so for Warrn Buffet.
If Mr. Buffet is true to form he sees this period as an oportune time to BUY. I would take his advice over my overpaid and underperforming stockbroker anytime. ANYBODY ELSE OUT THERE MADE OVER $60 Billion.??
His rate of return has now been adjusted to a normal level. It just goes to show that over the long term things do level out. So keep trying.
Ed O’Keefe
It bothers me a whole lot that Mr.Buffet did not see this coming, he had some involvement with AIG through his insurance business.I wonder if someone pulled the wool over his Eagle Eye.With his investments covering the whole spectrum of everyday life, no question, he will come through, send me a couple of his shares I would be happy
Who knows if he has lost his touch. But I do know some of the stocks that he purchased are not the best. For example, when he bought Clayton Homes, 21st Mortgage/Vanderbilt this type of financing is focusing on weak credit and low beacon scores. In this business when you finance somebody with credit issues and low scores you asking for repo’s/foreclosures. This company has the largest repo/foreclosure than any finance companies in the business. Look what happen to Greentree, Conseco, Greenpoint, and Bombardier. If I was one of richest man in the world - that is one stock I would have never have bought!!!!
ANDY
USUALLY W.B USED TO MOUVE THE MARKET AND TOKE ADVANTAGE OF IT. NOW THAT OVER 50% OF THE SMALL INVESTORS PORTFOLIO HAVE BEEN LOST THEY HAVO NO MONEY TO INVEST AND HELP W. MOUVE THE MARKET AND HIS PORTFOLIOS. MOPST OF THE BIG COMPANIES HE IS INVESTED IN ARE IN POOR FINANCIAL CONDITIONS . YES HE HAS THE MIDAS TOUCH.
I think everyone has lost their touch because the market does not make sense. Board of Directors have gone nuts over the last several years with all of the bonuses whether they made a profit or not. No person is worth a million dollars a month or year and all of the wine and dinning, when a company is not making a profit. They need to lay off at the top and not the workers that are making the product; because that is where the money is being made and without the workers the top people would be nothing. The Board should be looking out for the stockholders and stop all of the huge salaries and bonuses and quit being held hostage to the unions and top demanding people running the companies into the ground without any regard to the Stockholders. They are greedy and do not care what happens to the company.
Buffet doesn’t invest for the near future. He doesn’t care what happens in the short run, but rather invests for the long run. He’s an extrtemely knowledgeable investor who will be proved right or wrong in 10 years, not in one year.
I know there is no such thing as “freemoney”, ev erything will be free like the favor from us to Russia. We do how we want to live forever planning to beet originality, better than Borg. This is my time now and I will see every living think that has ever inhabited earth.
Buffet did not properly time the market hence his investments show a loss now. But then, how can you judge somebody in the mist of a bear market? He’ll come out on top and will not dwell too long on the fact that he could have got more had he timed the market better. He’ll have the last laugh as usual.
Well, all I see is that Warren Buffet is still on the possitive side of the road despite the fact that he too took a hit. Most investors got bigger hit, me too included.
I dont think Warren Buffet had a special touch he was trading on inside information not availible to the average investor ,I think he got caught beleiving dishonest CEOs only he thought he could believe them Now he is paying the price for their dihonesty
I have been a real estate appraiser for 30 years and the 10 year economic cycle referred to previously also can be roughly applied to the real estate market. I saw all this coming a few years ago when market values became super-inflated between 2001 and 2006 and lenders were making 100 LTV, NIV, and no-doc loans. It was insanity. Unfortunately, I did not foresee that it would affect the Stock Market so dramatically. I’ve lost most of my retirement mutual fund and a third of my home equity. Fortunately, I still have a job. I have learned through all this not to trust in my savings or posessions but, to trust in God. He brought me through this twice before and He will carry me through this time also. “Trust in the Lord with all your heart and lean not on your own understanding. In all your ways acknowledge Him and He will direct your paths.” Proverbs 3:5-6
Basically his philosophy and approach to investing remains the same I.E. to buy strong businesss which are undervalued at a moment.So this is temperory setback.
Warren Buffett is smart like a fox. look at some of his last purchases. He has been liberial for the last sixty years . RWH
While I type this I notice likely few will read it as I am posting it as the 105th comment. If you are indeed reading this, I am both perplexed and wondering why? Mr Buffet garnering such news? I believe the first 20 comments summed him and others suffering in this mamlaise perfectly…why read this one? Okay here’s a synopsis:
- everyone looses their touch in a short term bad market
- stock markets ravage the unconvinced
- While Mr Buffet has lost value, he is banking on a larger overhaul of the “system”. A pretty good bet actually, but it’s a bet…not a sure thing
- Mr Buffet has connections…into the White House, into boardrooms into a lot of places average investors don’t go. His moves are plays on what he knows and where he’s been…that’s why we watch him. But can boardrooms and the White House lie and be wrong? You better believe it.
- Finally, he espouses patience. So maybe we should after all it’s made him rich beyond most people’s dreams. Problem is, he still is rich even loosing 95% of his profit…average investors aren’t. So don’t play it exactly like him or you might regret it. Play to your own level with his moves in mind.
I beieve Warren is losing some of his ability to make sound and safe investments. He called derivatives, “financial weapons of mass destruction”, yet invested in them.
Charles R :
When the dust clears and the smoke blows away, say in 3-5
years, Warren Buffet and his portfolio will be up ten fold. Wait a little while until all of Wall Street blames
every one but themselves things tanking and they sell most of his choices.
Then; when his portfolio looks really bad, not bad, but really bad, buy his choices which should be selling for
ten cents on the dollar or less.
Join him and turn every 10 cents into a $10 dollar bill.
We are all making some mistakes right now, but at any set time it is very hard to make an educated decision. What hurt Mr. Buffet and all investors was when the market tanked last fall, and it took even the most intelligent by surprise.
No, he hasn’t lost his touch. If he has, we all have. The elected Congressmen, Senators and Wallstreet have finally destroyed everyone but themselves. All long term elected officials and all CEOs and board members who have been involved in this fraud and bad regulations should be fired or voted out of office.
Mr. Buffet is the best future bet for this market. I am buying more of Berkshire.
Warren Buffett’s record certainly speaks for his abilities in the past.
However, one must ask why (assuming he didn’t) he didn’t hedge his portfolio position by shorting the market. There are many inverse ETFs to provide some protection from a dropping market. All of the major indicies as well as most high profile stocks turned down the middle of 2008.
For those who think things are going right back up! The bad news is that “today” is more like 1929 than the recent blips in the market.
Mr. B Is one of the best gamblers I have ever seen. Know when to hold them. Know when to fold them. He’ll be back in the game, and probably surprise us all. I certainly wish him the best of luck.I just wish that I had some of his money to invest with him.
Thank you all for your comments. I greatly appreciate your feedback.
Here is a short 5 minute video on my view - “Has Warren Buffett Lost His Touch.”
http://hiddenvaluesalert.com/blog/index.php/2009/03/08/whats-wrong-warren10-years-later/
Let me know what you think of the video.
Best Regards,
Charles Mizrahi
MY 2ND COMMENT… There are other dimensions affecting Warren Buffet’s investments. (1) The Obama administration most likely will fail in their attempt to revive the American economy for several reasons. The 1st is that taxpayer wealth is being applied to save proven financial failures who will fail again. This means money is obviously not being used in the right places,i.e., in supporting entrepreneurs who are wealth creators for society, as opposed to government which grossly over consumes wealth (leaving society that much poorer.
(2) As Obama fails in flogging his “dead horse policies” he will fail politically with no 2nd term possible. Fallout from Obama’s failures will so severely damage the Pelosi/Reid et al ultra liberal Democratic Party that they will be out of office for a LONG, LONG time. Remember, you are accountable for all failures on your watch… blaming the past does not cut it with voters.
(3) America is now in the depths of a long,severe depression. From somewhere, a new strong political personality with inspiring leadership qualities will take the country out of depression doom into the sunlight of prosperity… just as Winston Churchill did for England in WW II.
(4)All socialistic governmental policies/departments to be revised/downsized/eliminated. The CONSTITUTION will be enforced as to how the country will be run. Law contrary to the constitution will be repealed… America is now on the road where it was before the Federal Reserve was created in 1913.
This may take quite a few years for Mr. Buffet’s portfolio to return to its former status. History tells a story, if we don’t listen, Mr. Market, who always listens, retell the tale to Mr. Buffett & the rest of us.
all the meaningless meanderings
sound like a club golfer telling tiger woods how to play golf
or a club cricketer telling ricky ponting how he should hook a ball or play a pull shot.
If the economy recovers I am betting that Mr. Buffet will emerge even more richer than he ever was.
No, he has not lost his touch. He has gone through this at least 2ice in his lifetime and he is buying them cheap. According to past highs and downturns patterns, this one still has another 8 years to go to before another boom!!!.
It’s all about investing for the long run. He has the best long run record of anyone. Let’s see where his fund is in 3-5 years. Then let’s see who lost their touch.
No–he has not lost his touch. He will come out well on top once again. He has been in the game too long to make any bad mistakes.
Jim Clarke
This statement says it all. While the vast majority of others were losing their shirt, he made a modest profit!
He may not be Nostradamus, but he still knows how to make solid investments.
you only lose money if you sell or your stock goes bankrupt.He is 50% down in GE for example but thats only if he sells. Hopefully if he bought into it at 22 he checked it out enough to be sure it will survive.