Ron Paul/Peter Schiff smarter than Warren Buffett??

[socialize_me]

I mean, Warren Buffett's portfolio ain't the greatest. He's heavily burdened with financials and he just acquired a lot of Goldman Sach's...if this economy is truly to tank and the Dollar is on the ropes, why isn't Buffett going into commodities?? Why does he insist on investing in another financial firm, even though Goldman Sach's is probably the best one out there??

 

[MsDoodahs]

I dunno...

Does Buffet stand to lose if the world loses confidence in the US financial system?

 

[FrankRep]

Warren Buffer knows a thing or two about investments. He is one of the richest men in the world. I think he knows what he's doing.

 

[itshappening]

Buffet knows something like, they will bail him out

 

[eric_cartman]

buffett is a smart guy... but he may not realize that all the things that have made him rich in the past, are not the same things that will make him rich in the future.

i think he would have to change his whole business model to profit in this new era... and his business is already too huge to make these drastic changes.

i also think he has had some help along the way from very powerful people... and maybe now he will owe them some favors. so his decision to buy GS may not have been in the best interest of his company, but the "higher ups" told him that he had too. and buffett is so filthy rich, that i doesn't really matter to him if his share prices fall. the only way he could have gotten that rich is by playing the game with the powerful people... and now they're forcing him to do this deal.

just a thought, maybe i'm way off base... but buying GS at that share price doesn't seem like a smart business decision to me.

 

[maqsur]

I hear on TV comments that Buffet would not have invested in Sachs if the bailout wasn't happening. Well, duh! He's making money in effect off a taxpayer scam. Bully for him.

 

[steph3n]

he is investing 5 billion with guarantees of 10% return, he will be depending on the taxpayer to pay that 10% if GS goes bellyup.

 

[Arklatex]

Buffet is mortal.

 

[mconder]

Buffet did this as a show of faith in the system.

 

[specsaregood]

Buffet did this as a show of faith in the system.

He did it because he was assured that "the fix was in".

 

[Chester Copperpot]

Buffet knows something like, they will bail him out

Thats right.. If theres one firm who seems to have EVERY candidate in their back pocket - Its Goldman Sachs.. Hell, Henry Paulson is a former CEO of Goldman Sachs..

Hes betting theyre going to get free money from the government.

Even if this congressional bailout doesnt come through for them, the fed can always give them a check for a few 10 or so billion and no problem.

 

[voytechs]

Just made me sick hearing him give all the praise to Paulson on CNBC this morning. He thanked the fed/paulson for having the "imagination" to do this bail out.

And his statement that the treasure could actually make money on this was scripted to make the deal look better than what it is. Sure it could potentially make money, but the are some many ifs and conditions that I think pigs could probably learn to fly before tax payers make any money on this. Ohh there are people making money on this, its just not going to be the taxpayer who will always get the short end of the stick with inflation, higher taxes, more regulation and less free choices in the market place.

 

[libertarian4321]

buffett is a smart guy... but he may not realize that all the things that have made him rich in the past, are not the same things that will make him rich in the future.

i think he would have to change his whole business model to profit in this new era... and his business is already too huge to make these drastic changes.

i also think he has had some help along the way from very powerful people... and maybe now he will owe them some favors. so his decision to buy GS may not have been in the best interest of his company, but the "higher ups" told him that he had too. and buffett is so filthy rich, that i doesn't really matter to him if his share prices fall. the only way he could have gotten that rich is by playing the game with the powerful people... and now they're forcing him to do this deal.

just a thought, maybe i'm way off base... but buying GS at that share price doesn't seem like a smart business decision to me.

Buffett got rich by buying good companies at low prices. That is his formula for success, and that will continue to work in the future.

He didn't buy GS common stock- he's getting preferred stock with a nice interest rate from a top of the line firm that has taken a big hit. I'd be shocked if Berkshire Hathaway loses money on this. Odds are, he'll rake in a huge profit.

Berkshire makes money, GS gets the help it needs, the purchase instills confidence in the markets, and increases liquidity. Likely a win-win-win-win situation.

BTW, there are no "higher ups" if you are Warren Buffett- he's the top dog at BH. The only guy who Buffet might listen to is his top assistant, Charlie Munger. Also, he got wealthy mostly by making great investments in what most would consider boring companies (Dairy Queen, Gillette, Coke, Washington Post, GEICO- stuff like that)- not buy being "connected" to political people or making high risk financial moves.

 

[MsDoodahs]

And while that is true and I respect value investors because I think that is a solid way to do it....isn't Warren the son of a congresscritter?

Just sayin.....

 

[tonesforjonesbones]

Nobody ever answered my question...Is Peter Schiff of the Schiffs from the Jekeyll Island Clan? tones

 

[MsDoodahs]

What "Schiffs Jekyll Island clan?"



eta: There's info on DP about it.

 

[LibertyEagle]

Nobody ever answered my question...Is Peter Schiff of the Schiffs from the Jekeyll Island Clan? tones

Dunno for sure; I don't think so though.

DailyPaul had something about it.
http://www.dailypaul.com/node/30220