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.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.
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...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.
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.So know we are sure we cant trust his opinion at all.
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.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"