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 ...
“Equity is falling faster than it can be taxed. Perhaps there is a correlation?”
I think you are on to something.
BUFFETT: I WAS ‘DUMB’
....First step is admitting the mistake....
Europe is getting it a lot worse than us-- which is why the dollar has gained ground against the Euro and UK Pound, but lost against the yen.
Under these circumstances, we will continue to have an easier time selling debt than Europe.
No, it's an annoying act. He's the master of ah shuckism, meant to deflect anger and resentment. The reason he supports the Democrats is envy deflection, just like all other limousine liberals. He has more to worry about from the left side of the bell curve than from conservatives. He's perfected the act and it works every time. His "approval ratings" among the hoi polloi are amazingly high for an old rich white man playing an act.
“among Buffet’s dumbest moves.....purchasing large amounts of newspaper chains, which have continued to bottom out, and for which there is no future.”
Buffet, the Whoreacle from Omaha. is a liberal fund manager. Liberal fund managers have kept the dinosaur fish wraps alive the past 3-5 years by buying their soon to be worthless stock with their fund owner’s money.
“Yes, I drive a Subaru..it confuses Liberals.”
It would confuse me out here in Wino Country, Californicator.
A couple of weeks ago my wife and I saw the usually liberal Volvo station wagon loaded with anti Obama/Rat stickers and pro Palin stickers. She laughed and said the old Volvo was probably dying from a split personality.
“buying ConocoPhillips shares when gas and oil prices were at their peak was perhaps the dumbest move in 2008.”
I would put endorsing Obama as his dumbest move.
If he had any guts he’d tell the American people his biggest mistake......supporting a socialist takeover by Obama and his Chicago thugs.
From Denninger's article ...
" ... As things stand today I have no confidence whatsoever that The Obama Administration has any intention to act according to law any more than George Bush's Administration did.
As a consequence until and unless the government's position and actions change my "base case" economic forecast must remain bearish and over time continue to grow more bearish; without the 2/3rds of all capital that is private in our economy, even with supplanting of that capital from the government (to the extent it is able) I believe we are looking at a potential 30% contraction in GDP from top to bottom and unemployment reaching north of 20% on U-6 (broad form), with the very real possibility of a 20% headline number ... "
From “Oracle of Omaha” to “Oracle of Obama”.
For Us By Us! It’s a black thing!
Because of course, under George Bush, the stock market hit 13,000 not once, but TWICE.
I'm certain that statement means something, but for the life of me I can't figure out what it is exactly.
Sorry.
That's what you get when you try to sway an election by inflating the price of gas through speculation. Dumbcrats in the MSM were shouting on tv that the price could hit $300 a barrel. DUMB. PROPAGANDA.
When you cook the books always remember to keep an honest book for yourself.
Clarification:
Dear Shareholders,
I actively participated in an effort to undermine the US economy so I could bring about a personal political preference that I knew would be bad for the nation. I joined my fortunes with those of George Soros and other wealthy individuals to subvert the welfare of our country. Please don’t hold this against me because I enjoy the fawning media that pretends that I am a benign rich person because I support Democrats.
Thanks so much,
Warren Buffet
I’ve always found it facinating how some of the richest people in this country always back the party that “hates” the rich. You’d think even the dumbest people would find something odd about that, wouldn’t you?
Heh-—beautiful.
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