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 ...
What does FUBO mean?
doubtful.
Warren Buffett warns America of ‘onslaught of inflation’
fubared by Obama
Some of his dumbest moves has been to purchase large amounts of newspaper chains, which have continued to bottom out, and for which there is no future.
And just about every day for the foreseeable future perhaps?
Buffet was in your face Pro Obama all of last year. His judgment sucks.
F U Barack Obama ... and all those who voted for Kentian Marxist
About your liberal politics and those you support? Yes you have, Warren.
And look what you and the ones you support have done to our country, its economy and markets and to its future and the future of our children and grandchildren.
You, sir, are a dumbass. Why couldn't you keep that to yourself and your stockholders?
lots of the late mortgages went to illegals with the assumption that if the people already living there couldn’t meet the payment, they’d just take in more boarders (squatters?) til they could. When immigration reform failed, and some modicum of enforcement of existing law with ICE raids, etc., occurred, the flow of newcomers from the spigot was attenuated , so the assumptions about ability to pay were overturned.
I thought so. Thanks, everyone who responded.
Because we are a Primary Bear Market [2-3 years, shaving near 75%]
Stupid question. Has the mandate by Congress forcing banks to give loans to basically anybody and everybody been reversed or eliminated? In other words, has the main reason for our current economic situation been corrected?
FReeper Dave has the gloom and doom on newsie stocks.
Buying GE at $19 was just as bad. Conoco will likely come back. GE is questionable if they don’t split off their financial arm.
Equity is falling faster than it can be taxed. Perhaps there is a correlation?
Warren was dumb to support Obama, too. Thanks loads, Warren.
“He was dumb alright. And his dumbest mistake was throwing his support behind zero.”
My thoughts exactly. A Democrat Congress and a far left Democrat President thanks, in part, to Warren Buffett. Maybe Warren can explain to us how he thought socialism would be good for capitalism.
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