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"The risks of being out of the game are huge compared to the risks of being in it," says Warren...

"The risks of being out of the game are huge compared to the risks of being in it," says Warren Buffett (BRK.B) is his annual letter, continuing to pursue elephants after being shut out in 2012 (he's already bagged one this year). He chides his fellow CEOs and the "uncertainty" meme about why they're not investing, noting Berkshire spent a record $9.8B on plant and equipment last year. "Of course the immediate future is uncertain; America has faced the unknown since 1776."
Comments (16)
  • Chris DeMuth Jr.
    , contributor
    Comments (4187) | Send Message
     
    For further reading on insights based on his prior letters and investments:

     

    http://seekingalpha.co...
    1 Mar 2013, 04:54 PM Reply Like
  • Augie91
    , contributor
    Comments (247) | Send Message
     
    DE would be a good buy imho :)
    1 Mar 2013, 06:46 PM Reply Like
  • ComputerBlue
    , contributor
    Comments (770) | Send Message
     
    Agree on DE. As would Clorox.
    1 Mar 2013, 08:53 PM Reply Like
  • redarrow5150
    , contributor
    Comments (1006) | Send Message
     
    DE has too much debt. I still say he tried to buy MNST last year and will probably try again. MNST fits EVERY criteria Buffet wants in a company...EVERYTHING.
    2 Mar 2013, 12:29 AM Reply Like
  • chopchop0
    , contributor
    Comments (3314) | Send Message
     
    Too niche and too much controversy. I think cmi is a better buffet stock
    2 Mar 2013, 02:17 AM Reply Like
  • redarrow5150
    , contributor
    Comments (1006) | Send Message
     
    He's bought newspaper under niche and controversy. The way Buffet looks at things long term I don't see the news headliners scaring him away.
    2 Mar 2013, 09:24 AM Reply Like
  • redarrow5150
    , contributor
    Comments (1006) | Send Message
     
    By the way Buffet bought preferred shares in Goldman Sachs and BA when banks were getting roasted by the public and investors.
    2 Mar 2013, 10:15 AM Reply Like
  • chopchop0
    , contributor
    Comments (3314) | Send Message
     
    I like buffet but I really question some of his recent investments, notably newspapers and Gm
    2 Mar 2013, 02:12 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1627) | Send Message
     
    chopchop, the GM position's size means it was likely done by one of his two CIO's, not Buffett.
    2 Mar 2013, 11:00 PM Reply Like
  • ZBNW
    , contributor
    Comments (138) | Send Message
     
    Gotta love that guy.
    2 Mar 2013, 02:49 AM Reply Like
  • hahaha48
    , contributor
    Comments (1078) | Send Message
     
    There is one thing people keep ignoring and that is the size of a company. Most theory about valuation of a company will fail when the company grows too big. Apple is a good example. If Apple keep growing at the same rate it did from 2007 to 2011 Apple will own all sp 500 in 10 years. Same with Buffet. His company is now too big in size and it cannot continue to do better than the market in the future. This was the case in the last 4 years and will continue in the future. The simple fact of overhead in running all those companies combined will reduce the performance of the combined entity and the law of average also makes it very difficult to outperform the market.
    2 Mar 2013, 03:44 AM Reply Like
  • jagmanvdp
    , contributor
    Comments (193) | Send Message
     
    Hahaha48

     

    You do realize that Berkshire isa group of companies right? Not a single company in a single business. To compare Berkshire to large singleentity firms is apples to oranges
    2 Mar 2013, 09:29 AM Reply Like
  • Agbug
    , contributor
    Comments (1098) | Send Message
     
    "America has face uncertainty since 1776" - and every prediction of the end of the world has so far been wrong. Buffet is definitey quotable.
    2 Mar 2013, 11:33 AM Reply Like
  • tr4head
    , contributor
    Comments (330) | Send Message
     
    But are govt economic statements quotable for anything other than propoganda?

     

    Since Obama was elected in 2008 we have had 13/19 quarters of Govt GDP estimates that were too high on GDP growth and too low on GDP declines. Does not sound like economic recovery to me but if you say a lie enough, gullible people believe.

     

    Now, we believe them when they say "no inflation"?
    2 Mar 2013, 12:37 PM Reply Like
  • redarrow5150
    , contributor
    Comments (1006) | Send Message
     
    Define economic recovery?
    2 Mar 2013, 03:04 PM Reply Like
  • cva100
    , contributor
    Comments (5) | Send Message
     
    Hearing TYC close to deal.
    3 Mar 2013, 07:34 AM Reply Like
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