Smarty_Pants

Buffett Gets 'Comeuppance' After Gold Outperforms

"First of all, Gold has no intrinsic value." - nport

Apparently the central banks of the world disagree as they have spent huge sums of money to purchase, store, and guard most of the gold that has ever been mined throughout history.

The true intrinsic value of gold lies in the fact that man cannot create it from nothing and there are limited supplies. Do a little research on the necessary properties of money.

Austrian economics posits that nothing has intrinsic value, only imputed value based on personal opinions. Insulin is worth more to a diabetic that to most people because he needs it to survive.

When someone asks what something is worth, you should mentally tack on the phrase "to whom". What is gold worth? TO YOU it may be worthless, while to a jeweler it may have a much higher value, being his stock in trade.

If people didn't have different values for items, they would never trade with each other. The gold spot price is the most recent 'value' of gold based on what one person was willing to sell for and another was willing to buy for. Each one believes he got the better value out of the transaction or he wouldn't have agreed.

Will Berkshire Lose Its Triple-A?

GE and Goldman Sachs would not say,
That Warren's rescues had helped save their day,
When his lottery ticket hit,
moonbat used most of it,
To buy a few shares of BRK-A

Will Berkshire Lose Its Triple-A?

"We package all of the money we owe to everyone and market it as an "investment" to be sold to suckers in Asia." - curbs in

curbs: We can't have found ALL the suckers in Asia. Maybe we could trade that stuff for coconuts and bananas on some small island in Indonesia. At least we'd get something out of it.

Will Berkshire Lose Its Triple-A?

OMG! BRK-A is down to only $84,300. (calling broker ...)

"I'll take ONE share."



If GE drops much further it will be paying a 10% yield, provided they don't lower the dividend or go under. Very tempting, but too soon to bite yet.

An Opportunity for Patient Investors - Barron's

"The prudent investor would be wise to start allocating money to equities." - otbricki and wyosteven

If you are comfortable with the risk that entails then by all means go ahead and buy. I will stay comfortably in the camp where the primary concern is to avoid losing money until such time as I see signs that the bear market is ending and a bull market begins. I may miss the exact bottom, but experience has taught me that waiting is the better choice.

Until that time I will only consider short term plays where I believe the odds of success are very much in my favor and I will exit those positions when I feel the odds have changed sufficiently against me.

I wish you good fortune in your purchases.

An Opportunity for Patient Investors - Barron's

"The good news, Barron's says, is that governments recognize the threat and are responding with unprecedented force"

This is good news? Applying the Law of Unintended Consequences to the gub'mint's attempt to 'help' leads one to believe that things are more likely to get worse instead of better.


"U.S. stocks, at 10x earnings and a 3% dividend yield, look reasonable."

Let's look at the entire big picture. Those earnings have yet to be revised down as a result of the recession/depression, ditto for the dividends. Cash strapped businesses will be pressured to cut dividends when future profits decline and P/Es will be much higher when the earnings are slashed.

Just remember that the market rallied in 1930 for roughly 6 months only to turn and drop even further than the initial plunge in 1929.

There is plenty of time to wait and see who the survivors are before plunging back into the fray headlong.

Here I Go, Criticizing Warren Buffett

moonbat,
I haven't seen any pictures, but I hear those camps have very nice public showering facilities, but I must admit the bullet option you put forward may be a viable alternative.

Fortunately Olin Corp. (NYSE: OLN) is trading near a 5 year low so I can take line my pocket from your free choice.

Disclosure: I don't own Olin Corp. (yet), but I may or may not own some of their products.

Here I Go, Criticizing Warren Buffett

No moonbat it's a pacifier, on loan from Mogambo.

And those concetration camps are already built. Seek them on utube.

Socialism cannot compete is also correct.

Did GE or GS shareholders have the opportunity to approve the generous terms to Buffett?

Did Freddie, Fannie, or AIG shareholders have the opportunity to approve unilateral takeover by the FED?

Violation of property rights (ie. shareholder's rights as existant in corporate bylaws) by deals with government agents and Buffett without shareholder approval used to be illegal.

I guess the government's role in following the law isn't really an important American tradition any more. All that stuff about 'supporting and defending the Constitution' is just words on paper.

The $64 question is, how long before they decide your rights aren't important?

Here I Go, Criticizing Warren Buffett

Who's this Warren Buffett guy? Just Kidding. ;-b

The author is right, Buffett's true colors shine through upon any sort of rational scrutiny. Apparently there are two sets of rules. One for those who publicly support socialism and one for those who are trying to earn a living.

Good name Midas. I bet you have solid gold $culptures in your home.

Buffett and the Limits to 'Awaiting Better Times'

If I had a nickel for every dollar Warren Buffett had I wouldn't be so concerned about where the market was going.

Buffett and the Limits to 'Awaiting Better Times'

Just what makes that little old aunt
Try to call the bottom with gann
Anyone knows an aunt, cant
Call the bottom with gann

But she's got high hopes, she's got high hopes
She's got high apple pie, in the sky hopes

So when your stock is gettin' low
'Stead of lettin' go
Just remember that aunt
Oops there goes another support line that can't

Buffett and the Limits to 'Awaiting Better Times'

moonbat: It appears your 'ly' key is broken.

Buffett and the Limits to 'Awaiting Better Times'

'Soma' is what they called it in George Orwell's 1984, moonbat.

Lacking that why not resort to re-runs of American Idol?

Buffett and the Limits to 'Awaiting Better Times'

Also keep in mind that Buffett has many Billions to invest. There is no way he can move that much capital in and out of the market in short order.

He has to start early just to have a chance to get everything invested before it's too late.

If you really believe that Buffett's style is the way to go then simply go buy stock in Berkshire B. at $3962.00 a share. You will get the exact same performance that Warren gets and you won't have to think about it.

Time to End Government Dickering Before It's Too Late

Best article I have read in quite some time. Your comments and suggestions make sense, which is why, sadly, they will never happen.

Your plan for buying at market then purchasing ownership to re-liquidate is the only economically sensible one I've heard. I would still be against it for the sole reason that it is subsidizing amoral behavior on the part of those who used insane leverage, kept any short term profits, and then lost the store when everything went bad, who now seek the taxpayer's aid to bail them out. They deserve to fail spectacularly and provide a shining example for future decision makers on how NOT to run a bank. Yes, this will cause widespread pain but we are past the point where that can be avoided. At this point we are simply trying to decide who will feel the pain most sharply or trying to spread the pain around as far as possible so it only hurts a little for everyone for a long time.

The reason why "Paulson and his buddies are at odds with me" is that they don't wish to be held accountable for their mistakes. They robbed their shareholders with the 'leverage and gamble' strategy to the tune of mega-millions in salaries, stock options, and bonuses. Now they wish to dump the problems they have created on the taxpayer and walk away, keeping their bonuses for themselves. What they deserve is a raft of civil and criminal lawsuits leaving them destitute and wearing orange jumpsuits for the destruction they have wrought with their actions.

Comment #1 by apppro (above) apparently believes that you can 'force' things back to normal by taking money from those prudent enough to keep it and/or preventing the "bad" outcomes by forbidding free market activities. Maybe he wishes to revisit the 1930s because that's where those kind of policies will take us, as we shall see soon enough.