Posted on 03/02/2009 5:38:55 AM PST by Liz
IN LETTER, ORACLE ADMITS TO ERRORS IN WORST-EVER '08
Warren Buffett admitted to doing some "dumb things" in 2008 - the worst year for Berkshire Hathaway in the 44 years he has run it. A brutal stock market decline amid a teeth-gnashing recession pushed Omaha-based Berkshire to a 96% drop in profits, its fifth straight quarterly earnings decline. Buffett, known as the Oracle of Omaha for his decades-long record of picking value investments, said buying ConocoPhillips shares when gas and oil prices were at their peak was perhaps the dumbest move in 2008. Berkshire bought 84.9 million shares at $82 a share - it closed Friday at $37.25, Buffett's paper loss was $2.6B. "I still believe the odds are good that oil sells far higher in the future than the current $40-$50 [per barrel] price," Buffett wrote... "But so far I have been dead wrong." ......Buffett explained to shareholders his investment philosophy - ".....pessimism is your friend, euphoria the enemy"......... in discussing Berkshire's buying and selling of derivatives, the seemingly indecipherable risk insurance product, Buffett told shareholders: "I expected these contracts to show a profit at expiration. Now, with the recession deepening at a rapid rate, the possibility of an eventual loss has increased." Buffett chided private equity firms, mortgage brokers, non-banks converted into banks to gain low-cost federal financing, monoline bond insurers and a host of other companies that helped bring about or are, in his view, gaining an unfair advantage during the recession.
(Excerpt) Read more at nypost.com ...
He was dumb alright. And his dumbest mistake was throwing his support behind zero.
He’ll be ever dumber,when the market tanks today.
Why is the market tanking today?
Number 1 on his list of dumb things in 2008 was his support for the person and the party that is in the process of intentionally destroying the very system that allowed him to create, and maintain, his wealth in the first place. For a financial genius, he sure is stupid.
A.I.G.
Christine Seib in New York
The multibillion-dollar bailouts handed out by the US Government will bring on an “onslaught of inflation”, Warren Buffett, the legendary investor, said in his keenly awaited annual letter to shareholders.
Mr Buffett, whose Berkshire Hathaway company last year reported only the second year of negative returns in its 44-year history, predicted that the economy would remain a shambles this year and “probably well beyond”.
President Obama signed off a $787 billion (£550 billion) stimulus package to revive America's economy this month. The President has also said that he expects to spend more than the $700 billion allocated to bail out the ailing banking sector.
“Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel,” Mr Buffett said. “These once unthinkable dosages will almost certainly bring on unwelcome after-effects. Their precise nature is anyone's guess, though one likely consequence is an onslaught of inflation.”
I think he still IS dumb. So are the people who voted for zero because Buffet said to vote for him. I really cannot tell you how many people threw Buffet’s words in my face during the election. He is a pathetic POS. He loaded the gun for the LIBERAL, COMMIE takeover.
NIKKEI 225 03/02 - close
7,280.15 -288.27
The market will tank today and every day until someone comes forth to kill the socialization of the American economy. Is there a brave soul alive who can do this?
Why is the market tanking today?
Foreign Markets took a big hit overnight.
Since he supported the big Zero, he shares in the blame of what is to come.
I remember when he Nikkei was at 40 grand. That was 1989.
ASH: Well, it's an interesting combination of elements, making him a tough little son-of-a-{bleep}.
RIPLEY: And you let him in.
I'd volunteer for jury duty ...
I don’t think the downward tread is going to stop until Obama shuts his trap and Congress stops “fixing” the problem.
did he admit that was his biggest mistake?
Another Obama zomby who bought into the commie left.
ANYONE who voted / supported FUBO is either a dupe or a traitor ... which one are you
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