Tuesday, May 31, 2011

Warren Buffett: America Is Going To Be Ok

In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.
Warren Buffett


  1. Past performance is no gurantee of future results.

  2. Past performance is no guarantee of future results.

  3. Buffet doesn't buy stocks at highs, when they are expensive. He's not a momo investor. He buys stocks when they are inexpensive.

  4. Buffett also buys preferred shares and privately negotiates an annual 10% return. Something most can not do. Imagine that, a 10% 'dividend', pretty simple math.

  5. Occasionally Buffett does have 10% deals but it doesn't represent a majority of his portfolio. Most fund managers can come up with deals like this but most don't have the balls to do them during a period of financial crisis.

    Buffett was getting returns of 50%-100% annually for years when he started BRKA. At that time he did not have that much connections. Haters unfairly dog him over 10% dividend on Goldman, which misses the point.

    Ultimately, he had gained over 330,000% return for early investors.

  6. Aparently America was not ok today. Dow down 280

  7. Bears had a very good day today, and I think there is more pain ahead for the Bulls.

    As for Buffett, he's still only as good as his last trade. Those spectacular returns happened in the past. Let's see him get those extraordinary returns today. I'm sure he made those spectacular returns during a roaring bull market using leverage. Let's see him get 330,000% today, without going bankrupt from trying to do that. I dare him. LOL

  8. Let's hope he's right. But we never had this amount of Government intervention in the economy before. And never before were banks, government and regular people this leveraged. We also never had so few people working to support social security, pensions, medicare, medicaid etc. for so many.

    Today, 60% of the US population are net takers. This is a different economy. If we can keep on growing the economy at historical rates we will be fine. However, if not, it could turn ugly quickly.

    At some point, we need to shift to an economy that can still work even if the population is declining. It's almost ludicrous that many US states have made their pension promises and budgets counting on an 8% average return in the stock market. This is why many are almost broke now.

    And if it wasn't for the hispanic immigrants, the US population would be shrinking already, just like the western European countries, where the muslim immigrants are currently keeping the population growth from plunging. But this won't last forever and will eventually reverse as well.

  9. Beanie,

    What do you think about the market today? Should we buy the dip?