05-03-2009, 12:50 AM
Join Date: Sep 2005
Location: in your mouth...
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now is time to PANIC! uber capitalist Warren Buffett....
Buffett says government is doing the right things
OMAHA, Neb. – Billionaire Warren Buffett spent Saturday praising the decisions U.S. officials made to right the economy in the midst of a "financial hurricane" and defending the ones he made to help his company navigate the storm.
The state of the economy and Berkshire Hathaway Inc.'s recent performance were among the first things addressed at the shareholders' meeting. Roughly 35,000 people packed an arena and overflow rooms to listen to Buffett and Berkshire Vice Chairman Charlie Munger answer questions for more than five hours.
"Overall, I commend the actions that were taken," Buffett said. But he said no one should expect perfection because the economy experienced a "financial hurricane."
But Buffett said he can't predict how quickly the economy and the markets will improve. He said last fall that the U.S. was facing an "economic Pearl Harbor."
To illustrate the challenges the nation faced last year, Buffett showed a sales receipt for $5 million in U.S. Treasury bonds that Berkshire sold in December for $90.07 more than face value, ensuring a negative return for the buyer. Buffett said he doesn't think most investors will see negative returns on U.S. bonds again in their lifetimes.
"It's been a very extraordinary year," he said.
The economy, succession at the top of Berkshire and the state of the company, which last year had its worst year since Buffett took over in 1965, were on the minds of many shareholders.
Berkshire's Class A stock lost 32 percent in 2008, and Berkshire's book value — assets minus liabilities — declined 9.6 percent, to $70,530 per share. That was the biggest drop in book value under Buffett and only the second time its book value has declined.
But despite Berkshire's rough year — which was depressed by unrealized multibillion-dollar derivative losses — the company still outpaced the market index Buffett uses as a measuring stick. The S&P 500 fell 37 percent in 2008.
Berkshire reported a 2008 profit of $4.99 billion, or $3,224 per Class A share. That was down 62 percent from the previous year, but better than many companies.
this buffett guy sounds familiar. oh thats right, he was the guy tabbed by mccain as a possible treasury secretary who said thanks but no thanks and that he was voting for obama.
Warren Buffet of Berkshire Hathaway appeared on the Charlie Rose show the other night. To my amazement, he told Charlie that he planned on voting for Barack Obama for president.
He told Charlie that under McCain he and other wealthy individuals have grown wealthier over the past six or seven years under Bush and would continue to do so under McCain. He said under the current tax laws, the person who empties his trash cans pay more in taxes that he and other wealthy individuals pay.
Buffet also indicated that the bail out (excuse me, rescue) bill needed to pass, which as you know has happened. He said that, if done right, taxpayers will make a profit, but it will take time.
In Buffet’s opinion, Paulson is a very capable individual and should be left to do his job. Give him the money and get out of his way so he can do what he does best. Buffet felt that oversight was fine, but not interference.
On a sad note, Buffet warned that the economy will continue to get worse for some time even with the passage of the bill.
Charlie asked him to predict how long before a recovery starts to happen. The answer was anywhere from six months to five years or maybe longe and that's only if the bail out works.
If you want to view the entire interview go to: http://www.charlierose.com/shows/200...-warren-buffet.
i gotta take the word of this guy over a bunch of keyboard jockeys who are entrenched in panic and doom and gloom, and cling to the myth that obama is the reason all our kids and childrens children wil be inheriting our debt.