If Warren Buffett started today

[Tysonboss1]

Some of his deals these days seem to be about renting out his name/reputation for a very large fee (ie Goldman Sachs and Bank of America).

I think it just goes back to what he said in 2008. He wants Berkshire to be the lender of last resort. Obviously the charge accordingly. But he has always looked to allocate large sums into good businesses when the market is thinking otherwise. Remember American express, probably his biggest win ever.

 

[banco]

I think it just goes back to what he said in 2008. He wants Berkshire to be the lender of last resort. Obviously the charge accordingly. But he has always looked to allocate large sums into good businesses when the market is thinking otherwise. Remember American express, probably his biggest win ever.

But he's hardly the lender of last resort. BofA could have raised the money more cheaply elsewhere. They got it from Buffett (with a big premium attached) for the PR value.

 

[Glen48]

In WB days the world was USA now it has all changed Apple develops a new phone using Uni grad's etc send it to some over seas company to build, no one in USA gets a look in'

GM or Ford built the muscle cars and any one who know the difference between up and down got a job and the market was not saturated with cars like today.

Only one's who think we will have full employment are lying polies we can't go back to the good times of 50 late 80's the new jobs are going to be in nano tech, robots medicine etc. which means you need more degree's than a thermometer to get a job other than floor sweeper the average man on the street will be on the street.

There will be some good companies to invest in but the general employing works with average I Q's will be thin on the ground.

 

[ENP]

The question I have, if Warren Buffett ignores everyone else and doesn't pay any attention to the media, why is the quoted that he reads 3-4 newspapers per day?

 

[VSntchr]

The question I have, if Warren Buffett ignores everyone else and doesn't pay any attention to the media, why is the quoted that he reads 3-4 newspapers per day?

Everything is a type of media. The newspapers he reads most likely relate to mainstreet activity rather than wall street activity

 

[Tysonboss1]

The question I have, if Warren Buffett ignores everyone else and doesn't pay any attention to the media, why is the quoted that he reads 3-4 newspapers per day?

He is a hyperactive learner, he reads everything, but the catch is he takes notice of facts and then forms his own opinion.

The way to treat a news paper is not as a sole source of information, but rather to give you leads into topics that may require further examination and research, you don't just read the headlines at face value.

 

[Tysonboss1]

But he's hardly the lender of last resort. BofA could have raised the money more cheaply elsewhere. They got it from Buffett (with a big premium attached) for the PR value.

Yes your right, it does send a message out that Warren has run his ruler over the company and it meets certain criteria.

 

[Tysonboss1]

the new jobs are going to be in nano tech, robots medicine etc. which means you need more degree's than a thermometer to get a job other than floor sweeper the average man on the street will be on the street..

Yes their will be new jobs created in those areas, But if those areas grow so will all the other areas, The biggest flaw in the "New economy" Idea is that people think the "old economy" companies become less significant.

Heres the thing, not matter how much nano tech, medicine etc etc advance we still need, Mines, trucks, bricks, tiles, capet, paint, bread, meat,grain, coffee shops, pubs and clubs, and the million other industries that make up the economy.

People have been using that arguement since the pc took over from the typewriter, and what happened there, 1000's of othr jobs have popped up in un thought of industries,

 

[Glen48]

I was talking about manual labour type work including worker's on assemble lines they have gone for ever , carpet paint etc all made over seas in some automated computerised machine designed in USA built in China.
Pubs clubs painters etc yes but will need more for full employment
As I said look at the Iphone only people who got a job in USA out of the development are sales people.
If people don't have a job or are on lower wages they will buy the survival items only.

Back to Buffett he now has money and can dictate the terms and the rest follow like sheep so BoA get live another day Buffett cash's in and OB looks good, WB knows his money is safe because the to big to fail will be supported by the Feds.

 

[Tysonboss1]

WB knows his money is safe because the to big to fail will be supported by the Feds.

Thats another myth,

Yes there are some companies that are to big to fail, But this doesn't mean the government or fed steps in to safe equity holders.

They step in to save the day to day operations, and stop the next dominoe falling.

Alot of the businesses that were "bailed out", Had their equity holders take huge hair cuts through dilution.

Buffett has openly said he would never buy an "attractive security" if he wouldn't feel comfortable holding the underlying business.

Bernake has said that when it steps into to save a to big to fail or buy a distressed asset he is looking to make a profit, and thats going to be at the expense of current equity holders, It's actually a fact the the government bail outs have not cost the US government a dime, they have generated profits.

 

[Tysonboss1]

I was talking about manual labour type work including worker's on assemble lines they have gone for ever , carpet paint etc all made over seas in some automated computerised machine designed in USA built in China.

Probably made using raw materials and energy sourced from Australia, needing australian workers in mining, transport. the chinese workers fed using australian meat and grain needing aussie workers again, the chinese workers take aussie holidays again needing more aussies in the service indusrty, All these aussie workers again need cars serviced, kids educated, Fed, etc.etc.

It's a global economy, nothing wrong with that, different nations are suited to different things.

 

[Tysonboss1]

He did make his first million through partnerships didn't he and did that involve pooled funds?

I found two videos I thought you might like,

the first is from a guy who lived across from Buffet in the 60's and who refused to join Buffets fund, the second is an interview with a guy who did invest in buffets fund.


The interview starts at the 6min video, you can skip to it by clicking on the sliding bar on the bottom, But the whole 10min vid does has some good insights.

 

[Wysiwyg]

I found two videos I thought you might like,

the first is from a guy who lived across from Buffet in the 60's and who refused to join Buffets fund, the second is an interview with a guy who did invest in buffets fund.

Don chose a different path hey.
Pleasing to see Dick Holland giving some of his massive wealth to the community for everyone to benefit. Life changing decisions for both.

 

[Tysonboss1]

Bernake has said that when it steps into to save a to big to fail or buy a distressed asset he is looking to make a profit, and thats going to be at the expense of current equity holders, It's actually a fact the the government bail outs have not cost the US government a dime, they have generated profits.

Here is a Video that shows Mr B explaining this.

Use the slide bar to fast forward to the 3 min mark.

 

[gav]

Buffett, champion of bailout, is also leading beneficiary

"That total, The Bee found, ranks Berkshire fifth among all investors in TARP-assisted companies. Berkshire's TARP holdings constitute 30 percent of its publicly disclosed stock portfolio, and that proportion reflects at least twice as much dependence on bailed-out banks as any other large investor."

Read more: http://www.mcclatchydc.com/2009/04/05/65496/buffett-champion-of-bailout-is.html#ixzz1WbV4yPlF