Survivalist Forum banner
1 - 20 of 32 Posts

·
... --- ...
Joined
·
14,874 Posts
Anything Buffet ( or his ilk) says beyond something obvious like "buy low-sell high" should be taken with the proverbial grain of salt. If he says "sell now, it's all about to crash", then odds are that you should hold pat, if not buy.
Given all we're seeing and all we know,if he's still spouting publically about what a great risk the dollar still is, you can bet he's divesting as fast as he can. ;)
 

·
Si vis pacem, para bellum
Joined
·
459 Posts
lol Buffet owns so much he can even get rid of it fast enough,,his only option is to sucker a few buyers in and release some shares as they step up to buy..either way its a game ender for the buffetmeister...we are in the midst of a wealth changing scenario and warren will get caught on the wrong foot...
 

·
Live Secret, Live Happy
Joined
·
16,396 Posts
I read the complete quote. He stated that US bonds are still safe because the gove can simply print more money to pay you back. He views this as proof that US Bonds carry no risk.

This is a contradiction in my view. Some one that pays you back with cheaper (inflated) dollars is cheating you.

Currency inflation, not default, is the risk.

Perhaps the Oracle of Omaha is getting old.
 

·
Registered
Joined
·
291 Posts
I read the complete quote. He stated that US bonds are still safe because the gove can simply print more money to pay you back. He views this as proof that US Bonds carry no risk.

This is a contradiction in my view. Some one that pays you back with cheaper (inflated) dollars is cheating you.

Currency inflation, not default, is the risk.

Perhaps the Oracle of Omaha is getting old.
The rating industry deals with risk of default, not risk of inflation. Buffet said himself "if you're talking about inflation, that's a different question". He's correct: the US will never default. It will kick the printing presses into high gear and pay off its debt in worthless dollars before that. That's why it makes no sense to downgrade us.
 

·
Registered
Joined
·
1,529 Posts
Buffet gets deals you or I will never get.

He's way on the inside, like a 10 billion dollar loan to Goldman Sachs where he has a debt-equity swap option at the end of 12 months. So he could get his 10 Billion plus interest or a stock option with a low strike price, whichever deal nets him more.

I wouldn't listen to Buffet about investing. If hes telling you to buy something, hes already bought it, if he tells you to sell something, he's already sold it. That goes for the rest of the Who's-Who on Wall Street.
 

·
Free Your Mind
Joined
·
982 Posts
Buffet gets deals you or I will never get.

He's way on the inside, like a 10 billion dollar loan to Goldman Sachs where he has a debt-equity swap option at the end of 12 months. So he could get his 10 Billion plus interest or a stock option with a low strike price, whichever deal nets him more.

I wouldn't listen to Buffet about investing. If hes telling you to buy something, hes already bought it, if he tells you to sell something, he's already sold it. That goes for the rest of the Who's-Who on Wall Street.
Correct. What many of us learn too late (me included) is to do the opposite of what the Wall Street cheerleaders promote. The ONLY thing eventually promoted is their net worth...
 

·
Registered
Joined
·
989 Posts
So know we are sure we cant trust his opinion at all.
I don't think thats fair based on this article. You can conclude this from everything else leading up to this that he's said, but I kinda agree with him on this.

He said "Now if you're talking about inflation, that's a different question". Which is to say that without considering inflation, there was no justification for downgrade. Of course, the entire reason there was a downgrade was because of monetization of the debt leading to inflation, but technically what he said was true.

I think buffet relies on people to not understand what he actually says. Obama does the same thing. They both leave themselves wide open on their choice of words, so that it's hard to call them a liar.
 

·
Registered
Joined
·
2,665 Posts
i remember him talking about he should pay more taxes. he said something along the lines of " i pay a lower tax rate than my secretary". OK hippocrite, stop paying the minimum and taking deductions. i might still take stock advice from him but i fear he has become like the grandparents in that old bill cosby bit. grandpa is great, he's not great "your looking at an old person trying to get into heaven now"
 

·
Svensk hamster
Joined
·
3,088 Posts
I think he is right if he looks at the potential of the USA in a positive way. USA definately has the potential to have "quadruple-A" rating. S&P did the opposite, they look at USA in the worst way imaginable and lowered the rating. Their rating was based on a presumed risk that the political parties might handle things the worst way possible. S&P has a lousy trackrecord btw and I don't know why people pay attention to them.
 

·
Registered
Joined
·
291 Posts
i remember him talking about he should pay more taxes. he said something along the lines of " i pay a lower tax rate than my secretary". OK hippocrite, stop paying the minimum and taking deductions. i might still take stock advice from him but i fear he has become like the grandparents in that old bill cosby bit. grandpa is great, he's not great "your looking at an old person trying to get into heaven now"
He's saving as much money as he can for his charitable donations. He's not exactly an ardent supporter of the US government's spending practices and would rather not see considerable amounts of his wealth go to them, when they could be going to education and healthcare via the Gates Foundation.
 

·
Sam Adams was right....
Joined
·
9,381 Posts
Buffett will be 81 years old on August 30th... he'll likely not live long enough to see the economy turn around..
 
1 - 20 of 32 Posts
Top