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Financier Warren Buffett has said the US government is generally taking the right steps to aid economic recovery. The legendary investor was speaking to 35,000 shareholders of his Berkshire Hathaway company at their annual general meeting in Omaha, Nebraska.
The value of Berkshire Hathaway’s investments fell by nearly 10% in the last year and Mr Buffett’s personal wealth shrank by $25 billion. He told the AGM he expected the company to make further losses this year.
Speaking at the opening of the meeting, Mr Buffett said it had been “a very extraordinary year” and the economy had experienced “a financial hurricane”.
“When the American public pulls back the way they have, the government does need to step in. It is the right thing to do, but it won’t be a free ride.”
But he said the government had reacted well, telling his investors: “Overall, I commend the actions that were taken…”
Berkshire’s range of investments are seen as a bellwether of the US economy.
Some people raised questions on the issue of appointing a successor for 78-year-old Mr Buffett.
But Mr Buffett told the meeting he would not name a successor to begin following him now as all candidates were already running businesses and those not appointed would possibly choose to leave the company, the Associated Press reported.
“It’d be a waste of talent. I don’t really see any advantages in having some crown prince around,” he said.
Know any investors who lost only 10% in the sub-prime meltdown? Even if you’re not an investor, did your “well-managed” 401K do as well?
I hope he’s right.
As for the 10%…IIRC Buffett stayed away from high-risk stuff, wisely, and his portfolio didn’t rise nor fall as much as most. Call it self-regulation, but he appears to have been the smartest guy in the room, yet again.
He is not the only money manager endorsing the plan.
That doesn’t say it could be way better. I agree with Arianna Huffington
“Fleeting expletive” no! It’s time for Americans to draw the line in the sand and say that if bankers are not going to side with us when we need help, we’re not going to side with them when they do.
Comforting to see trusted personalities and experts like Warren Buffett endorse Obama’s plans.
Compare that to Republican Jack Abramoff who pleaded guilty on to three criminal felony counts for defrauding of Americans and sentenced to Prison.
I’m not a professional investor, but my portfolio is only down 2%. I moved a lot of my money into commodities a couple of years ago after I discovered the Austrian Economics theory (when times are tough, invest in spices).
However, that number is misleading. My spending power dropped substantially. As one example, our grocery bill has grown by 50% in the last year.
And like OBoB, I hope he is right. The alternative is scary. My opinion, though, is that it looks good now because everything is being propped up. Once those props fail, they are either going to have to borrow more money if they can find it or let the market adjust.
My 2c.
Oh, good. I got here before the Fox Snooze crowd.
I thought I’d check to see how they’re doing in their neck of the doom-and-gloom soothsayers. And they must be right. Of course.
Newscorp is still 55% below their high from last year before the plummet.
HIS personal wealth decreased from 60 billion to 35 billion – that is a 40% loss. Apparently he is not the smartest guy. He is approving Obama’s plan so that he can get bailout money, stimulus money and insider information to make back the money he lost. Anyone who thinks otherwise is an idiot. (He admits Obama’s plan is not working by stating that there will be further losses – if Obama’s plan worked as promised, we would have frowth and not losses.
#7, Ayatollah1,
So nothing is lost by preparing for the worst.
Actually you are very wrong.
Preparing for the worse is usually a lose lose situation. For example, how much money did you personally spend on weapons and ammunition? How much money is THAT investment making you? Are 9mm rounds tastier deep fried or baked?
Several wing nut religious groups have abandoned rationality and even committed mass suicide in their quest to stave off the worst.
Our own country has taken our civil rights because they are preparing for the worst terrorist attack while ignoring the largest killers already killing people (ie, auto accidents, preventable cancers, heart disease, obesity, etc)
The lesson should always be “work smarter, not harder”.
#4, Liberty Liar,
…my portfolio is only down 2%. I moved a lot of my money into commodities a couple of years ago …
Bullshit. Most commodities have fallen by 40% and many by much more. I know of no commodity that hasn’t drastically lost value.
This is what happens when you play Stock Market in mommy’s basement with play money.
One of the rare moments I mostly agree with # 8 Mr. Fusion,
The ideology/theology of “preparing for the worst” is what got us into IRAQ.
On the other hand the ideology/theology of expecting the best from our finical institutions (no need for government regulations) is what got us into this economic mess.
And; let’s not forget it was a bunch of very smart Mathematics/Physics PHD types that engineered the un-understandable finical instruments that got us into this economic mess.
I am all for being prudent and not reckless; and think, the “lesson should always be HONEST, OPEN, TRANSPARENT and “work smarter, not harder””. That is a firm foundation to build a country on.
I don’t think America got to being a once respected and admired super power by only being smarter.
Being smarter, is not enough. If it was enough, the country wouldn’t be in the deep dodo we are in now. We have loads of smart people in places of power. Don’t let George Bush dumbness or religiosity distract us from the root cause, unchecked greed and power.
What America doesn’t now have, is an active and participatory citizenry. I am not sure why America was so willing to demonstrate against the government during Vietnam and not during IRAQ. I wonder if it’s because on average each household has two wage earners working their ass off just to stay afloat. Insecure workers understandably tend not to want to rock the boat.
#9, Mr. Fusion, gold was a pretty good go while oil was going up, but not commodities, just options. At least one need not meet a margin call, and the payout was pretty good. And all you have at risk is the option price. But those deals don’t happen every day, as you intimated.
See! Even a pro-business capitalist agrees with Obama!
Not.
woop, -looks like someone slipped Buffett the Kool-Aid.
-i wonder what obama promised him for that.
-s
Mr. Buffett is correct again. Warren and Charlie have built Berkshire on careful scrutiny and long-term vision underpinned by strong moral character and common sense. With strong long-term planning, one often has to commit to sacrafice, not just over a short period but over years….think of saving for retirement. It is the incessent short-term demand for rewards (or no sacrafice) that kills most enterprises.
#10, noname,
Actually you are correct quite often. Every time you agree with me
😉
#11, Ayatollah1,
#8 Preparing=getting out of debt…into mining stocks and metals.
Not guns.
So, what condiments go good with stock certificates?
What mining stocks haven’t fallen drastically and paying no dividends?
Evidently obama & crew, which inlcudes his internet loons like yourself, want to label conservatives extremists…to install your “historic leader” as dictator?
How on earth is labeling you (and your ilk) extremeist installing your “historic leader” as dictator? It is comments like that that show you to be an idiot.
while I hope you fail in your made quest to install a liberal dictatorship…I’ll have the last laugh…
Please, give some evidence that there is a conspiracy or effort to install a liberal dictatorship? For eight years we had the right wing nuts doing their best to install a neo-con dictatorship.
It may be better to live under robber barons than under omnipotent moral busybodies.
Yet the right wing nuts want to install BOTH the robber barons (today colloquially call Wall Street), and a theological tyranny. Yup, same disconnect.
#20, Ayatollah1
And one day…something will snap…all the tyranny of it will dawn on you…and you will yearn for the good old days…yearn for when you were free…
You mean how most of us felt during the Bush tyranny?
Of all tyrannies, a tyranny exercised for the good …
You do realize that Lewis was talking about the religious fanatics.
Deregulation gave us Enron. Moral busibodies gave us a free education system, interstate freeway system, a national defense system, care for veterans, etc. Yes, those programs promoted by moral busibodies cost lots of money but I’ll take them over the introspective short-sighted greed of unregulated types like Jeff Skilling anyday.
Hum, # 13 Alfred1 said,
#10 freedom made America great, and an essential component was free markets…
I am very surprised, I would have expected you of all people to say something like, our greatness is our religion with a bible verse or two; at least, something to that effect.
There are quite a few things that made America great. Part of it was having great leaders, who addressed the immediate needs of their day with out destroying the future prospects of the country; Teddy and Franklin Roosevelt, Lincoln, Jefferson, Adams, Washington ….
The slogan of the day for Teddy’s generation was bust the trusts. Lincoln is quoted for saying “These capitalists generally act harmoniously and in concert, to fleece the people.”
I know # 13 Alfred1 will love this one from George Washington: “As Mankind becomes more liberal, they will be more apt to allow that all those who conduct themselves as worthy members of the community are equally entitled to the protections of civil government. I hope ever to see America among the foremost nations of justice and liberality.”
I am sure # 13 Alfred1, the George Washington quote just make you want to scream.
#24 noname
Excellent comment.
#26 Alfred1
“…you will obey the commandments from washington as to what you can eat, what you can wear, what you can drive…and what you can think…
the tyranny is only beginning…
Its a soft tyranny…people are begging they want it…because they think they will get things from it…
History proves that is a false hope…”
…an apt description of the Bush II legacy and those who have failed to recognize the stupidity of it.
# 26 Alfred1, If only what you say could be ascribed in your words “its beyond dispute now:”.
Keep trying, some day I am sure, with enough practice and maturity, you may have a really valid and useful thing to say.
Not that you don’t have any valid points now; it’s just that, those few valid and good observations get lost in all the unnecessary, unneeded and distracting trash talk you do now. You argue your points like a spoiled child. Then expect us to extract pearls of wisdom from your incessant mud slinging.
Recall “A fool uttereth all his mind: but a wise man keepeth it in till afterwards.” (Proverbs 29:11) Think about it!!!!!!
#30, Ayatollah,
That is tyranny.
No, that is the ranting of a madman.
Recite the times Bush demanded you eat certain foods, restrict your co2 or methane emissions, not drive certain cars, not work for particular businesses, not accept certain forms of compensation for your work, etc…
Who sent innocent people to jail for political expediency?
Who intercepted our phone calls and mail to sneak a peak?
Who filled Guantanamo with people only to find out later they were innocent of any crime. Somehow they got tortured anyway, but Bush justified it anyway because they might have been terrorists.
Who locked up Americans without access to lawyers or the courts for years?
Who bombed a foreign country for the shear hell of it knowing full well the excuse was a lie?
Who decided that our neighbors in Canada were terrorists that needed passports to enter the US?
Who rigged the vote in Ohio, disenfranchising hundreds of thousands?
Who prohibited my taking photographs of bridges?
It is a long list Ayatollah. Please list all the Civil liberties Obama has deprived us of. NOT what you insist he might do, but what he has done. Oopps, here, let me help you.
Nothing.
There, now compare the partial list about Bush with the complete list on Obama. Notice anything?
#28, noname,
See? There you go again. We agree.
😉
# 30 Alfred1, on the very bottom is a definition of statism, which; I will add describes Bush’s term much more accurately, then OBama’s. OBama didn’t start this FINACIAL melt down, BUSH CO and his acolytes did. You sound like a BUCH CO acolyte!!
So Alfred1, in the vein of your comment #30, name me ONE, just ONE OBama government civil, criminal or otherwise case brought against an individual or a PRIVATELY OWNED company where, as you say, “demanded you eat certain foods, restrict your co2 or methane emissions, not drive certain cars, not work for particular business, not accept certain forms of compensation for your work, etc…”
As you keep noting, ownership has it’s capitalistic protected previligies, SO; when a PRIVATELY/PUBLICLY OWNED company decides to accept TAX PAYER money, then as rights of ownership; if the TAX PAYER wants to change management, the TAX PAYER needs to own common stock in said company. If we expect the companie(s) to go bankrupt then preferred stock is preferred.
The Fascist concept of statism:
Holds that “basic concept that sovereignty is vested not in the people but in the national state, and that all individuals and associations exist only to enhance the power, the prestige, and the well-being of the state
#28, noname
Another great comment!
Anyway, I really enjoyed the Berkshire-Hathaway meeting yesterday. As with the several previous meetings I have attended it was interesting, inspiring and a great deal of fun. I was glad to be able to get into the main complex and got a seat about 20 rows from the front! Last year I came in a little late and was fortunate enough to be in the nose-bleed section and not in one of the auxillary halls.
Being able to hear Warren and Charlie address questions is always interesting. I liked the change of format this year to having a group of reporters select from a wide array of questions from the floor to ask, instead of having several shareholders repeat earlier questions or simply gush admiration for the oracles of Omaha.
Warren, Charlie, Bill Gates and others are big believers in “social capitalism”, something I am sure that Alfred1 would gag at. However, it is that appreciation of social capitalism that makes one not only wealthy, but truly rich.
#9,…my portfolio is only down 2%. I moved a lot of my money into commodities a couple of years ago …
Bullshit. Most commodities have fallen by 40% and many by much more. I know of no commodity that hasn’t drastically lost value.
Look at gold and silver and other precious metals you moron.
HELP, HELP, THERE IS A COMMIE UNDER AYATOLLAH’S BED
Never mind. It’s just an old banana peel he threw under the bed instead of in the garbage. I guess his mommy didn’t clean his room very well. Maybe it was all the yellowish stains on the ceiling, and walls, and sheets that stops her.
#37, Liberty Liar,
Look at gold and silver and other precious metals you moron.
Gold and silver aren’t commodities. If you actually owned any you would know that. You would also know that you can’t eat gold and it costs money to store it. In the long run, it is not a great hedge against inflation as much as you have been led to believe.
#40, Gold and silver aren’t commodities
BWAHAHAHAHA!!!
I’ll let your foot in mouth statement stand on its own merits — or lack thereof.
AFA the rest of your post . . . I am at a complete loss for words. I’ve never run into anybody so blind. No wonder you manage a McDonalds.
# 33 Mr. Fusion, thank you, I am just an agreeable person. 😉