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K202 is now back to just the original author again, Mark Bern. Mark is both a CPA and a CFA charter holder. He has a bachelors degree in Business Admin. with a concentration in Economics. His experience includes both private and public sector and careers in accounting, financial and market... More
  • Is Buffett in bed with Obama? 4 comments
    Nov 12, 2009 4:01 PM | about stocks: BRK.A, BRK.B, BNI, SPY

    I worry when someone I admire for their investing acumen seems to have become a shill for our President.  Maybe I'm just too pessimistic about our economy.  But, it the US dollar continues its fall, investing overseas where growth is stronger, government deficits are smaller, and currencies are strengthening against the US$ would seem to provide a better expected yield.  It seems as though Mr. Buffett is trying to talk the market higher and dispel concerns over the economy.  If he can convince other major investors to invest capital in the US he may make his prophecy come true.  Only time will tell just how much clout the oracle from Omaha still wields.

    NEW YORK (Reuters) – Warren Buffett, perhaps the world's most admired investor, said on Thursday the financial panic that gripped the globe last year is a thing of the past, even as the U.S. economy's struggles persist.

    "The financial panic is behind us," the world's second-richest person said at Columbia University's business school. "Our economy was sputtering, still is sputtering some."

    Buffett, 79, nevertheless said there is greater opportunity for investments inside the United States than outside, noting that the U.S. economy is far larger than any other.

    Last month, preliminary government data showed the U.S. economy expanded in the third quarter, the first three-month period of growth since the second quarter of 2008.

    Nonetheless, the U.S. unemployment rate last month reached 10.2 percent, the first double-digit reading in 26 years.

    Buffett last week made a big bet on the economy when his Berkshire Hathaway Inc (BRKa.N) (BRKb.N) agreed to pay about $26.4 billion for the 77 percent of railroad company Burlington Northern Santa Fe Corp (BNI.N) that it did not already own.

    Separately, Buffett advised the government not to coddle companies that need federal bailouts to survive or to preserve sufficient capital. "More sticks are called for," he said.

    (Reporting by Clare Baldwin and Jonathan Stempel; Editing by Tim Dobbyn)

    Stocks: BRK.A, BRK.B, BNI, SPY
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Comments (4)
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  • Don't be so hard on folksy Warren.


    He's just a simple country billionaire that wants easy abortions, euthenasia and expedited end of life counseling, and government control of all assets.


    Nothing that a massive police state can't accomplish.
    12 Nov 2009, 04:16 PM Reply Like
  • Mark: Buffett's already spooning with Wall Street. Now he's teaming up with Obama to fork over America to, "We the (few) people..."


    Train wreck coming soon at your local small business.


    Good Insta!
    12 Nov 2009, 04:40 PM Reply Like
  • Author’s reply » I should have said "someone I used to admire." Well, he's made his money, and he's nearing the end of his days so maybe he's looking at life a little differently now. It makes me wonder, though, if maybe he had different political views when he was still struggling to make a living.
    12 Nov 2009, 05:42 PM Reply Like
  • A woman who knows both of us said to me, "Warren Buffett did not call the 2008 crash. But you did (in "A Modern Approach to Graham and Dodd Investing," Wiley, 2004).


    Ben Graham believed (and probably taught Buffett) that we would not have another 1929 or Depression. I had a mentor (born in 1896, contemporaneously with Graham and Dodd) who told me we would: "I may not live to see it, but you will."


    Buffett was "conditioned" that things could get only "so bad." Although not as smart as Buffett, I was taught "better," that they could get maximally bad.
    15 Jan 2010, 12:08 PM Reply Like
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