Buffett buys in

ZenGum · 10-01-2008, 07:40 PM

Warren Buffett is considered one of the canniest investors in the world.

His rule is: never lose money.

He recently invested $5 billion in Goldman Sachs.

He has just invested $3 billion in General Electric.

Either the old feller has lost the plot (which I very much doubt), or this is a big vote of confidence in the system as a whole.

Even if he is just "bargain hunting", those stocks are only bargains if things are going to get better. Makes me feel a bit better.

SamIam · 10-01-2008, 08:48 PM

Maybe he wants it to appear as a vote of confidence in the system as a hole.

xoxoxoBruce · 10-01-2008, 11:02 PM

Fairly safe picks that will allow him a profit later, if not sooner.

Remember, he's got the money to spare, and if he does happen to screw up, he can afford to lose that measly $8 billion. He won't be happy, but he won't be broke, either.

lookout123 · 10-01-2008, 11:30 PM

OK, seriously? There are only two options. 1) History repeats - we go into recession but then come out and carry on as usual. 2) History doesn't repeat - we go into a death spiral and end up bartering for milk and eggs.

Buffett is a long term value investor. He buys distressed companies that have strong fundamentals, decent management, and a catalyst for future growth, then he holds them for a very long time. He is buying two companies that are well off their high water marks and because he buys in enormous blocks he gets extremely steep discounts off current pricing. This is classic bargain hunting.

He'll make a killing but you won't hear about that for years to come because he will hold onto the companies until he feels they're no longer a good value - most likely that will be after his death.

of course, the whole global market could collapse in which case his money is useless anyway.

Griff · 10-02-2008, 05:28 AM

Cool, I've got milk and eggs. What do you have?

I'm enjoying the fear game they're playing now as if there are no economic consequences to protecting corrupt organizations from market forces.

Sundae · 10-02-2008, 05:51 AM

I love buffets, especially the All You Can Eat variety.
Oh, wait.... Sorry.

SamIam · 10-02-2008, 09:28 AM

I can bake my own bread over a campfire and I have a friend with two elk in his freezer, plus 3 live steers and a heifer, plus so many hunting rifles I can't count them all. If anyone would like to come out, I'll put your name up for discussion.

HungLikeJesus · 10-02-2008, 09:33 AM

That must be a huge freezer.

glatt · 10-02-2008, 09:51 AM

Speaking of freezers, and this thread on the economic crisis...

There was a story in the business section of today's paper about Wachovia's customers and how some of them are a bit nervous about their funds.

Quote:

Days before Charlotte-based Wachovia became the latest bank to succumb to the financial crisis, Charlie Park, who lives near Williamsburg, decided it was time to cut ties with the institution that held his money for 11 years.

Last Thursday, as it became clear that Wachovia was in serious trouble, he withdrew the $1,200 he had in his checking account. He transferred half to an account at nearby C&F Bank and stashed the rest in an envelope in his freezer. He plans to use the cash quickly to cover expenses for his family of five.

"It'll be cold, but the money should be fine," he said.
....

Right or wrong, Park, who runs a budgeting service called PearBudget.com, isn't interested in all the FDIC rules. "With three small kids, I don't have time for filling out paperwork and getting my money back from a bankrupt corporation or from the government," he said.

OK, Charlie Park, Williamsburg, VA. $1,200 cash in freezer. Works at PearBudget.

Should I Google him? Post a Street View picture of his house up here? Directions?

At least crack heads don't read newspapers.

classicman · 10-02-2008, 09:56 AM

Hmm, not the sharpest knife in the drawer. Guess the "reporter" wasn't either.

barefoot serpent · 10-02-2008, 10:16 AM

Buffett also bought Constellation Energy and recently took a 10% stake in a Chinese battery/electric vehicle company. So he's not just backing GS & GE (BTW he's already out of the $ with the latter.)

Bullitt · 10-02-2008, 10:42 AM

Quote:

Originally Posted by classicman

Hmm, not the sharpest knife in the drawer. Guess the "reporter" wasn't either.

Are they ever really?

10-01-2008, 07:40 PM	#1
ZenGum Doctor Wtf Join Date: Oct 2007 Location: Badelaide, Baustralia Posts: 12,861	Buffett buys in Warren Buffett is considered one of the canniest investors in the world. His rule is: never lose money. He recently invested $5 billion in Goldman Sachs. He has just invested $3 billion in General Electric. Either the old feller has lost the plot (which I very much doubt), or this is a big vote of confidence in the system as a whole. Even if he is just "bargain hunting", those stocks are only bargains if things are going to get better. Makes me feel a bit better. __________________ Shut up and hug. MoreThanPretty, Nov 5, 2008. Just because I'm nominally polite, does not make me a pussy. Sundae Girl.

10-01-2008, 11:02 PM	#3
xoxoxoBruce The future is unwritten Join Date: Oct 2002 Posts: 71,105	Fairly safe picks that will allow him a profit later, if not sooner. Remember, he's got the money to spare, and if he does happen to screw up, he can afford to lose that measly $8 billion. He won't be happy, but he won't be broke, either. __________________ The descent of man ~ Nixon, Friedman, Reagan, Trump.

10-01-2008, 11:30 PM	#4
lookout123 changed his status to single Join Date: Apr 2004 Location: Right behind you. No, the other side. Posts: 10,308	OK, seriously? There are only two options. 1) History repeats - we go into recession but then come out and carry on as usual. 2) History doesn't repeat - we go into a death spiral and end up bartering for milk and eggs. Buffett is a long term value investor. He buys distressed companies that have strong fundamentals, decent management, and a catalyst for future growth, then he holds them for a very long time. He is buying two companies that are well off their high water marks and because he buys in enormous blocks he gets extremely steep discounts off current pricing. This is classic bargain hunting. He'll make a killing but you won't hear about that for years to come because he will hold onto the companies until he feels they're no longer a good value - most likely that will be after his death. of course, the whole global market could collapse in which case his money is useless anyway. __________________ Getting knocked down is no sin, it's not getting back up that's the sin

10-02-2008, 05:28 AM	#5
Griff still says videotape Join Date: Feb 2001 Posts: 26,813	Cool, I've got milk and eggs. What do you have? I'm enjoying the fear game they're playing now as if there are no economic consequences to protecting corrupt organizations from market forces. __________________ If you would only recognize that life is hard, things would be so much easier for you. - Louis D. Brandeis

10-02-2008, 05:51 AM	#6
Sundae polaroid of perfection Join Date: Sep 2005 Location: West Yorkshire Posts: 24,185	I love buffets, especially the All You Can Eat variety. Oh, wait.... Sorry. __________________ Life's hard you know, so strike a pose on a Cadillac

10-01-2008, 08:48 PM	#2
SamIam Registered User Join Date: Jun 2007 Location: Not here Posts: 2,655	Maybe he wants it to appear as a vote of confidence in the system as a hole.

10-02-2008, 09:28 AM	#7
SamIam Registered User Join Date: Jun 2007 Location: Not here Posts: 2,655	I can bake my own bread over a campfire and I have a friend with two elk in his freezer, plus 3 live steers and a heifer, plus so many hunting rifles I can't count them all. If anyone would like to come out, I'll put your name up for discussion.

10-02-2008, 09:33 AM	#8
HungLikeJesus Only looks like a disaster tourist Join Date: Feb 2007 Location: above 7,000 feet Posts: 7,208	That must be a huge freezer. __________________ Keep Your Bodies Off My Lawn SteveDallas's Random Thread Picker.

10-02-2008, 09:56 AM	#10
classicman barely disguised asshole, keeper of all that is holy. Join Date: Nov 2007 Posts: 23,401	Hmm, not the sharpest knife in the drawer. Guess the "reporter" wasn't either. __________________ "like strapping a pillow on a bull in a china shop" Bullitt

10-02-2008, 10:16 AM	#11
barefoot serpent go ahead, abbrev. it Join Date: Jun 2005 Location: Lawrence, KS Posts: 2,623	Buffett also bought Constellation Energy and recently took a 10% stake in a Chinese battery/electric vehicle company. So he's not just backing GS & GE (BTW he's already out of the $ with the latter.) __________________ Chooses rowing vs. wading

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