chris vale

Wells Fargo: Bank of America Redux

I can see why you are frustrated, but it's not as bad as you think. The $4.2 Billion mark up from FSP 157-4 ($2.8 Billion after tax if we are comparing apples to apples) is not booked as earnings and it is not included in Tier 1 Capital (the main capital ratio that regulators use). It is included in the tangible common equity (TCE), and that is why you see such a big jump, up by $4.5 Billion. Without the accounting change TCE would have increased by only $1.7 Billion.

5 Reasons to Ignore Buffett

1) Mr. Buffet's personal account is about $500 Million.
2) Since he has been invested in US treasury bonds until recently, he has not lost 50% of his account as this post suggests. I am at a loss to understand why that is confusing for you. The stock market is down, treasury bonds are not.
3) Now that the stock market is trading at a much lower price, he is buying stocks. The first of these was wells Fargo, which he bought in the low $20 range. It is above $30 today.
4) He has not said it will take 20 years for the market to recover. His comment was "I don't know where the market will be 5 months from now. I think I know where it will be in 5 years."
5) You are wrong, Mr. Buffett is right. Time will prove this, as it always has. This is the fourth time he has given advice publicly. The first was to buy in 1974. The second was to buy in 1979. The third was to sell in 1999. The record speaks for itself, you can look it up.

Berkshire: Bond Market Not Always Omniscient - Especially Lately

Response to Plenty: Mr Buffett is frequantly misquoted. He has never called credit default swaps crazy, though he has been critical of derivatives in more general terms. However, he has been very clear that derivatives can be mispriced, and when they are, he is prepared to act accordingly. He has never proclaimed the bond insurer business model dead, there is no factual basis for that assertion whatsoever. I respectfully disagree that the SEC has been "conned". Mr Buffett simply files a petition that anyone can file and which is granted to Berkshire based on the simple fact that people really will follow his lead. But, it truly does benefit no one but Berkshire, and perhaps the SEC should not allow it.

Berkshire: Bond Market Not Always Omniscient - Especially Lately

Wow! Let's correct the facts first and then discuss your investing record, Tom. First, Buffett has said on numerous occasions that the bond market is subject to mispricing. He certainly does not advocate effiicient market theory, you must already know that. Second, the recent debt issuance is from Berkshire Hathaway subsidiary Berkshire Financial, and is not backed by the full might of Berkshire, which is why the bond market has discounted the issuance. Third, Buffett has a long record of speaking his mind, not "talking his book", as you claim. Berkshire's reputation, which is based in large part on the integrity of the CEO, is an enormous business advantage for Berkshire, and is a signifigant part of the moat they have created. To risk that priceless asset, which took decades to create, for some short term gain created by talking up his book, would be as foolish as buying Compucredit at $35 per share. Or First Marblehead... I don't have the heart to go on about your record, but please, it's beneath you and any other professional investor to engage in character assassination of Mr Buffett.

CarMax: Another 'Recession-Proof' Myth Busted

You've missed the point entirely. The decline in price of Carmax's inventory is due to rising fuel cost. It has nothing to do with recession.