Duude

Has Buffett Lost His Mind?

I was bewildered when he paid the premium he paid. Its not whether Berkshire will make a reasonable return on investment but how much and in what time frame? If the economy remains sluggish for the next few years, and if the current power in Washington keeps denying new coal mining permits while succeeding in passing a cap and trade bill, we can be assured a reasonable return won't happen in Buffet's life time. This all goes back to the time value of money. Is this the best strategy for Berkshire resources? I vote doubtful.

How Warren Buffett Is Smarter than the G20

While I agree any allowing for China's currency to appreciate would likely lead to more demand of commodities from the US, I find it far less than likely that China will allow any substantial repeg of their currency over the next decade. The Chinese are far from convinced that their current industrial production can be sustained without the American consumer reverting back to 2006 buying habits. We've got a new game in town. In the US its certain that taxes will rise and the standard of living will drop. The dollar can't remain even at current levels because the Fed will have to stop buying US treasuries. Add to that the Obama administration's reluctance to allow any new coal mines which only dovetails with their plans to tax coal electricity. All of this in an effort to make coal more expensive and thus less competitive with inefficient solar and wind power. Unfortunately, solar and wind don't require transport like coal. Transporting coal is the bread and butter of the railroads. I think he would have done better in the Forex markets than paying a 30% premium for BNI.

Does Warren Buffett Think Goldman Is More Creditworthy Than GE?

One question that comes to mind is how much upside does GE actually have over the next few years. At the rate they're going it should hit 10 in the middle of the next decade. At least he'll have an offset with the dividend.