Listening To Warren Buffet Could Create The Next Depression

Toogood Reports ^ | May 9, 2003 | Mary Mostert

[cowtowney]

"So, here we have Warren Buffett, with his $36 billion, telling us peasants out here that other CEOs, who pull down $1 to $7 million a year are just corrupt scoundrels and he, with his $36 billion, is the small guy´s hero. Am I the only one that finds something missing in this picture? "

Buffet is giving sound advice that CEO's who rip off the shareholders should be heavily scrutiinized. This advice should not be discounted because it came from a wealthy democrat.

Furthermore, to suggest that Warren Buffet has such power that he can convince people to stay out of the market so he can buy up companies at low prices is ludicrous. The market is a tad more efficient than that.

[Grampa Dave]

The Gold bugs and those who hate America love Buffet.

When I hear him rant like we shouldn't have a tax cut, I see the Da$$hole, The Clintoons and all of the lying Rats on the hill and in the media.

When he rants as a multi billionaire that we don't need a tax cut, you know where his leftwing heart is. He wants to reelect Rats, remove GW and make bundles as they do their things to the economies.

His lack of paying dividends on his stocks is enough to turn me off.

$crew him! Invest in the good indexes and laugh at him.

[Grampa Dave]

You have nailed this left winger with this analysis:

I damn well will blame Buffett when he pisses all over a sector and drives down the market value and then buys in later claiming it's now a good deal or a sound long term play...since he himself brought it down to some degree.

[Grampa Dave]

Amen about this elitist left winger. You posted:

I'll take Templeton any day. Buffett is a Democrat who has made lots of money. Well, good for him, but where was he when Clinton was president? Now, he comes out of the woodwork and continues issuing negative statements the past two years. Good for Greenspan for coming back at him.

Buffett thinks that his poop doesn't stink, and we should all bow down and worship every time he speaks. No thank you, Warren. Personally, I think that your lifestyle is just as weird as your pronouncements.

[HamiltonJay]

I worked for 1/2 a dozen companies in the 90s, or so, and I can tell you the CEO's of the vast majority of them were complete scoundrels... they weren't interested in creating wealth, just manipulating company value on paper for cash out! Buffet is right on on his characterizations of most CEO's, particularly in a speculative market.

Buying below value and conservatively upping their value is a guaranteed way to make money. Speculation is the roulette wheel. except instead of what 1 in 30something odds you are looking at 1 in a thousand or even greater odds.

Speculation is fine, but it should not be where most uneducated average citizens are pumping their money, they will get taken. Leave the speculating to the speculators.

[betty boop]

I think we ought to focus on something specific that he as written to see if and where we disagree.

Okay Phaedrus! Sounds good to me! (Yet I bet we won't disagree about much, if anything, on substance. My complaint is only about the propriety of Mr. Buffett's recent public comments [not his Annual Statement to Shareholders], given the dicey present circumstances. :^) )

[AdamSelene235]

As for me, I'm betting on the Long Boom, and I'm not afraid to say so, either. I'm buying high-dividend paying stocks, and in most cases I'm writing covered call options on them to hedge my downside, protect my dividends, and increase my monthly cash inflow from those stocks.

Nah. If you were a real bull. You would short gold stocks and stuff the money in out of the money calls.

[Phaedrus]

Okay Phaedrus! Sounds good to me! (Yet I bet we won't disagree about much, if anything, on substance. My complaint is only about the propriety of Mr. Buffett's recent public comments [not his Annual Statement to Shareholders], given the dicey present circumstances. :^) )

Yeh, I think you're right. Often, though, the media filter distorts and I wouldn't underrate that as a source of error and sensationalism. I'll see if I can Google something up, in due course ... ;-}

[betty boop]

Often, though, the media filter distorts and I wouldn't underrate that as a source of error and sensationalism.

I agree that's certainly a possibility! There seems to be a rather large contingent of the press that is working overtime these days to "talk the cowboy's economy down," just in time for the next election. The best way to elect one of those unelectable Nine Dwarfs (or is it ten?) is to make sure a whole lot of people lose their jobs or otherwise suffer financially between now and November 2004. So much for media integrity.... Buffett should be savvy enough to prevent himself from being used as a tool for such purposes. He has a reputation as a man of character. I hope he deserves it, and lives up to it.

[wardaddy]

Thanks.

Buffett has his sycophants....my mom used to be one. She's gotten better.

[Grampa Dave]

I would like as fair balance and full disclosure that any so called financial guru, economic guru and stock guru would have to post his/her political belief/affiliation when they discuss something a tax cut or economic trends.

On tv there should be a banner saying, republican, demonicrat, LP, or Deformed Party under the guru while talking on tv.

Any article about what they are advising should state this at the beginning and end of each article.

Far too many of these so called gurus want to see our economy trashed for their political purposes.

[Fred]

BUFFET DONATES MILLIONS TO POPULATION CONTROL

[EternalVigilance]

Sheesh, as much as I hate to, I have to pray for this guy to live.

When he kicks the bucket, Planned Parenthood is going to have billions to use to destroy not only little children, but our republic.

[arete]

Sir John Templeton, a $5 billion dollar republican who fled excessive taxation in the US by moving to the Bahamas states that tax cuts are like magical elixer to the economy. Take your pick.

Sir John also recently said that in the coming economic downturn and fallout from the borrow and spend illusion pushed by Greenspan and the administation, you will be able to buy houses for 10 cents on the dollar. Interesting, isn't it?

Richard W.

[arete]

Nevertheless, we've found out over the past couple of years that the game is rigged. There's a whole generation of investors out there who've learned a hard lesson about trusting CEO's, CPA's and investment bankers. Blame Enron, Global Crossing, Worldcom, and a host of others for that....not Warren Buffett.

Buffett is one of the smartest businessmen and investors of our time. He's old school by most stardards and believes that things like exotic structured finance and derivatives are dangerous and threats to the system. His rejection of the Wall Street and Washington flim flam has put him at odds with many who are out to fleece average investors with new age economic "magic". Now you see your money and now you don't. I'll take Buffett any day over the shills, cheerleaders and con men.

Richard W.

[arete]

Ping to the (un)usual suspects.

A reminder that Roger Arnold will be interviewing Dr. Frank Shostak on his Sunday morning show. If you need a link, let me know.

Richard W.

[FreedomPoster]

That post was Lazamataz-worthy. You trying to creat some competition?

;-)

[Tauzero]

Boy, "don't let that rich liberal Buffett make even more money" has got to be the weirdest argument I've ever heard for being bullish -- and bullish on tech, at that!

"Who REALLY profited from the 1990s downturn when the savings of little old ladies were wiped out? Wasn´t it Warren Buffett who snatched up the undervalued stocks, sold by frightened little old ladies, and transferred a few million into HIS portfolio as they rose in value?"

Does this lady actually own any Berkshire shares? Is she dishonest or just ignorant?

"It happened in the 1930s and it CAN happen again"

Plenty of new businesses and opportunities were created in the 30s. People continued to work, play, and be productive. In fact, overall labor productivity increases during the 30s. Life went on, as difficult as it was for some.

Of course the entire premise of the piece is wrong. Buffett can't make the markets move. And when most people finally do take his advice -- which last I heard amounted to nothing less than the great sin of buying index funds, so I'm not clear on what it is exactly the author is complaining about -- why then Buffett's advice will change, and people won't listen to him then, either.

[Tauzero]

" If Buffett is so smart why is he a Democrat?"

A lot of smart people are Democrats.

Being smart doesn't necessarily mean that you think clearly about your politics or religion.

In the case of academic types, being the "experts", they of course favor a government that places "experts" in charge of everything.

[Tauzero]

"Sir John Templeton, a $5 billion dollar republican who fled excessive taxation in the US by moving to the Bahamas states that tax cuts are like magical elixer to the economy. Take your pick."

And Templeton is at least as bearish as Buffett.