Market madness ending, says Buffett (SAGE OF OMAHA ALERT?)

BBC News ^ | September 27, 2002 | BBC News

[MadIvan]

This fellow is called a sage when all he's doing is telling common sense. If only we call could find stocks for good businesses at the right price. Somehow, it's not that simple I think. ;)

Regards, Ivan

[MadIvan]

Bump!

[Dog Gone]

He's doing something right. You can buy ONE share of his company today for a mere $73,800.

[Times-a-Wastin]

he has also brought a dying, bankrupt Fruit of the Loom textile company back to life with new plants, new machines and new jobs for United States textile workers. He may know what he is talking about.

[ReadMyMind]

This fellow is called a sage when all he's doing is telling common sense.

In the land of the blind, the one-eyed-man is king.

[Black Agnes]

Hmmm, wonder how many, if any, of those workers are illegals. I've heard the textile business was 'eat up with' illegals.

[ReadMyMind]

Back in 2000, you could have bought that share for only $45,000.

[cynicom]

Buffett recently bought a local family owned business, one that was rock solid financially. The family was left to run it. Buffett has bigger things in mind for the business.

[eno_]

Well, the telecom sector IS down to a P/E of 16, which is close to sane. But I can also say with near-certainty that at least two of Nortel, Lucent, Ericsson, and Alcatel will not exist in 6 months.

It is therefore easy to predict that telecom will be even cheaper in 4-8 months than it is now. Who would buy today if further bloodletting is certain?

[SoDak]

He's totally right on this issue.

[wideawake]

Alcatel and Ericsson will both undoubtedly exist in 6 months. The EU and Sweden, respectively, will not permit them to fail and will bail them out.

Either Lucent or Nortel will go, however. I'm inclined to think that it's Nortel, but both companies have ~$4B of cash left to waste, so it won't be six months. Maybe a year.

[Pearls Before Swine]

This fellow is called a sage when all he's doing is telling common sense.

In the areas of investment and common sense, I'm a big Buffett fan. His political stands are utopian, unrealistic, and dreamy.

That doesn't stop me from appreciating his investment acumen and plain old folksy humor. I think my favorite is when an interviewer asked him "Mr. Buffett, after you've died, what would you like people to say about you?". He thought for a minute, and replied, "God--was he old!".

[TomB]

Geez Ivan, you scared the s**t out of me.

For a minute, I thought you wrote (SAGE OF OSAMA ALERT).

Well, never mind, carry on.

[L,TOWM]

Somehow, it's not that simple I think.

"10% inspiration, 90% perspiration" was Thomas Edison's philosophy. From what Buffet says, he works harder than a lot of other researchers, and does'nt try to make $$$ in a business he does'nt understand.

He has actually achieved genius status in my book,by simply grasping his own limitations and being comfortable with them.

[Austin Willard Wright]

Interestingly, Buffett's father was a radically free market congressman, Howard Buffett of Nebraska. Howard Buffett was the Ron Paul of the 1950s. The Buffett family doesn't like to talk about "crazy" Howard too much.

[Desdemona]

I think the inspiration/perspiration ratio was actually 1-99, and I thought it was Einstein, but I've been known to be wrong.

At any rate, common sense is so novel these days, it makes headlines.

[MadIvan]

I think the inspiration/perspiration ratio was actually 1-99, and I thought it was Einstein, but I've been known to be wrong.

The adage states invention is "1 percent inspiration and 99 percent perspiration." and was said by Edison. So you get half marks.

At any rate, common sense is so novel these days, it makes headlines.

Or to put it more simply: as my grandfather said - "Common sense is not common."

Regards, Ivan

[eno_]

I think it took Ericsson about 15 minutes to burn through the $3B rights issue. And with sequential %15-20% revenue declines among these four, it will only burn faster next quarter. Even the government of Sweden has limits to wasting money.

There might be company named Ericsson in a year, but without chips, wireline, or broadband. And its an open question if 3G will get built before all of Ericsson's 3G products are obsolete. If there is a rescue, it will be radical.

That said, Nortel will crash first.

[Desdemona]

...and was said by Edison. So you get half marks.

Well, it began with an E.

[Wurlitzer]

The man knows his stocks but he also owns the LA Times, Buffalo News. I don't know what other communist rags he owns if any. I gather he does not contribute to the editorial content.