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Buffett: Execs should pay price for risky bets - Yahoo! News (http://news.yahoo.com/s/ap/20100227/ap_on_bi_ge/us_buffett_letter - broken link)
Quote:
In my view a board of directors of a huge financial institution is derelict if it does not insist that its CEO bear full responsibility for risk control," Buffett wrote. "If he's incapable of handling that job, he should look for other employment"
it should be pointed out, however that
he was against derivatives until he invested in them.
he was for everybody paying more taxes, but never wrote that extra check to the government. (and actually structured deals to benefit himself in a tax position)
he was against splitting stock, but then he did split it.
he was for buying american, but gobbled up foreign currencies and stocks. (for the trade imbalance )
buffett thinks there is going to be a housing recovery in a year, which i don't see. as well, he is heavily invested in goldman sachs, which i think should be in for a tough ride ahead. (justifiably)
i have nothing personally against buffett, as he is a very shrewd operator, and have to give him points for the ability to craft an image so successfully.
Last edited by floridasandy; 02-28-2010 at 07:22 AM..
Not that I don't agree with what he says, but.....
1. He's an [almost] 80 year old man. His billions aside, he's far 'over the hill' and in the eyes of many, a relic from generations now gone by. Remember the rule of the young[er] and stupid: "I don't care how many more seasons than me you have under youre belt. I don't care if your way is better, faster, and cheaper, I'm going to do it MY way."
2. With the full power of both the US Government and the Federal Reserve having already said and acted in effect "the profits are to be shared by the few. The losses must be shared by all", who in their right might thinks that gravy train is going to be taken away? With that genie now out of the bottle, you might have better luck putting toothpaste back in the tube.
3. The ability to play with and lose other peoples money while simultaneously being able to keep the profits is a perk of being a "fat cat", plain and simple. Like an unwritten rule and job requirement for being an airline gate agent is to be able to take and handle verbal abuse from the public because of inclement weather, a perk for being a plutocrat is to..well...wield some strong influence and gamble with other peoples money.
Buffett is a pigman just like the rest of them. That folksy bs he spreads is just that, bs. He is also in favor of inheritance tax but you notice he's not paying any, give his fortune to Bill Gates foundation.
Watch what people do, not what they say.
There's a great biography of buffett, roger lowenstein's, "The Making of an American Capitalist". Better than snowball, imo.
-He's not as terrible as Bernanke or Paulson, or other wall street criminals. And to Buffett's credit, most of Berkshire's gains happened well before this crisis on Wall Street. It's ironic that Buffett made most of his money before people got interested in him. In his latest shareholder letter, he said that 12 people (count'em 12) attended the meeting in 1981! And now it's like 35,000. Shows you about the wisdom of crowds.
These journalists that follow him around like a puppy, where were they 20-25 years ago? The berkshire fawning is way overdone, given the size of the company. Other mature companies like GE don't get that sort of adulation.
-I think in the last 10-15 years, he's broken from his old mold, since he's got so much money (with a smaller universe of stocks to buy), and he has to do more things to keep the returns going. He can't just buy coke or american express when they are cheap.
-He got rich in the 50's, he didnt have the govt on his side then. And he didnt get these sweet deals, like gs.
-Notice how his image has gotten so carefully crafted in the last 10-15 years. Its to keep him relevant and keep his name out there. Otherwise, he risks being seen as a relic (esp by young investors).
Buffett: Execs should pay price for risky bets - Yahoo! News (http://news.yahoo.com/s/ap/20100227/ap_on_bi_ge/us_buffett_letter - broken link)
Personal responsibility. My my. What a concept.
Do we also need to remind individuals that Buffet is one of the largest stockholders in companies who received bailouts from the govt? GS is one such example..
If he believed in "personal responsibility", he would have loaned GS money rather than the taxpayer...
Man is a financial genius, and a hypocrite...
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