Quaker

7 Reasons Not to Buy Berkshire Hathaway

BTW, Kudo's to Hoa for his synthesis of Berkshire. Absolutely 100% correct. Only one thing to add. You don't know misery until you've had to get service from GEICO.

7 Reasons Not to Buy Berkshire Hathaway

There's really no argueing with Buffett lovers. It's a cult.

IMO, Buffet has been perfectly worthless over the last 10 years. He may have beaten the S&P 500 over the lastt en years, but any idiot could have beaten the S&P. I kicked the crap out of the S&P.

The trade since 2000 has been commodities,plain and simple. Buffet had one big play there, Petro China. I trade stocks from my sofa and I had Petro China a year before he did.

My biggest problem with Buffet is that I simply can't stand the guy. He spends his entire day looking for a camer to to get in front of. His investment philosophy is, "give me your money, you ain't getting it back".

Then there's the nauseating "Habits of a billionaire" crap he throws out. Warren drinks cokes, Warren eats hambergers, Warren doesn't tip, Warren jerks off... As Katie Couric once said,in talking about twitter. Only an idiot would care what I had for lunch.

Buffet said gold would fall. It went up 400%. Warren missed on oil. It went up 1,400%. Warren missed on agriculture. The biggest plays in the decade were Agrium, Monsanto and Mosaic.

His only major hit in this was BNI. Over the last ten years, a managed portfolio of MOS, AGU,MON, BNI and a couple oilcompanies, along with a 50% holding in ten year treasuries would have beaten Berkshires pants off at a small fraction of the downside risk.

Is the U.S. Heading Towards a Recession?

The whole idea that GDP will increase if global growth increases is just plain loonie. It's Global growth that's ruining GDP. America is a borrow and spend CONSUMER. We have three auto companies, all of which will be bankrupt as soon as investors stop selling them bonds. US farm labor is $12 to $18 an hour FOR ILLEGALS".
A huge percentage of GDP is the churning of deficit money.

Last year America borrowed $20 for every $2.50 in gdp growth. This is the highest debt to gdp ratio in US history, 4-5X the historic norm.

Apple just announced they sold 1 million Iphone's at about 500 a piece. That's $500 million. What percentage of that $500 million do you think American consumers actually paid for and how much was borrowed.

American GDP growth less debt incurred is minus 20% a year.