Do What Buffett Says, Not What He Does

Tyler Durden's picture




 

As can be seen in the attached clip Warren Buffett, as part of his anti money tirade, both real (gold) and fiat, the Chairman of Berkshire is certainly not a fan of holding cash in any form. To wit: "cash is as risky an asset you can own over time." In other words, the opportunity cost of not owning something else with that cash is indicative of even more risk in the equities arena. So one wonders: is the fact that Buffett's firm now has a record amount of cash on its books more an example of senility or hypocrisy.... Or is all hell about to break loose as per Buffett's own words? We can't decide.

 

Compare the oracular words He spaketh in today's interview with Becky 'not-so' Quick - forward to 2:30 for the punchline on cash...

 

with the sad reality of BRK's own balance sheet exuberance with the highly risky cash...

 

To give CNBC their credit, their was one lone voice in the darkness. Gary Kaminsky pointed out this apparent hypocrisy this morning but alas the powers-that-be at the business channel felt videos of Zuck's arrival and 'The Avengers' reviews were more appropriate.

Chart: Bloomberg

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Mon, 05/07/2012 - 14:03 | 2404112 Fidel Sarcastro
Fidel Sarcastro's picture

Senility...the Old Coger of Omaha is losing it.

Mon, 05/07/2012 - 14:16 | 2404168 redpill
redpill's picture

This crusty old bastard has become such a crony scumsucker that he's worse than any villain Ayn Rand could have dreamed up for Atlas Shrugged. His rambling contradictory blathering is a daisy chain of obselete, defunct economic colloquialisms designed to provide a smoke screen for the simple fact that he has no fucking clue what he's doing or how to operate in this fundamentally flawed economy, and that he has completely given up attempting to be an honest actor and his entire strategy now revolves around buying favor from politicians and central bankers. He is a decrepit, rotting piece of crony zombie flesh, and the world will be a far better place when he's gone.

Mon, 05/07/2012 - 15:22 | 2404377 ATM
ATM's picture

You are almost exactly right about Old Warren except fo rthe fact that he certainly does know how ot operate in this flawed economy and not only does he have a clue how to do so he is scamming the system even more as it collapses and devolves into the next economic iteration.

The fucking scumbag is right at the forefront of the thievery. That isn't by accident but by design.

Mon, 05/07/2012 - 15:44 | 2404469 slaughterer
slaughterer's picture

BRK common is entering into resistance if you want to short it for revenge.  

Mon, 05/07/2012 - 14:26 | 2404199 surfwon
surfwon's picture

Warren Baffoon........... just a bag of bones........... cumsucker

Mon, 05/07/2012 - 14:39 | 2404248 Hippocratic Oaf
Hippocratic Oaf's picture

"I like to fondle pretty things, Becky"

"I bet you do, Warren" says Becky

If 5 hrs. of 'The Oracle' coverage is all CNBS has, oh never mind.......

Mon, 05/07/2012 - 14:52 | 2404288 fonestar
fonestar's picture

+1000

 

Burgers, strawberry shakes, JayZ, Jimmy Buffet... UGH!!  Name dropping, fake, pop culture whore!  Somebody put this guy out of his misery!

Mon, 05/07/2012 - 14:33 | 2404229 whatsinaname
whatsinaname's picture

He is waiting for the Facebook IPO so he can buy it with all fours. 

Why else would he keep so much dry powder ready ? 

Mon, 05/07/2012 - 14:54 | 2404292 fonestar
fonestar's picture

or frontrun it with all fours... he will be inside

Mon, 05/07/2012 - 15:39 | 2404437 HarryM
HarryM's picture

Nice spikes in cash holding right before each downturn.

Screw the charts, just watch his cash.

Mon, 05/07/2012 - 14:47 | 2404256 pkea
pkea's picture

let's just say that he is not the wealthiest individual, he doesn't really move markets, we all know who does move it and who has it all...

why would he or anyone still even care about investing in his age(obviously won't either enjoy it or see the results of his investments growth)...he really even almost passed the age of giving it all away to experience joy of sharing with less fortunate than him...

Mon, 05/07/2012 - 14:48 | 2404268 ScotlandTheBrave
ScotlandTheBrave's picture

He's not loosing it.  The chart says "Cash AND MARKETABLE SECURITIES."  Under GAAP [Generally Accepted Accounting Principles] the term Cash can include short-term MARKETABLE SECURITIES such as 90 day US Treasuries.  So no lying going on...they're not sitting on cash they've invested it in Berniek & Co.

Mon, 05/07/2012 - 15:11 | 2404343 jekyll island
jekyll island's picture

I think he is more like a vampire squid, talking up the opposite side of the trade he wants to make.  Probably is overweight in cash because he thinks the market is going to tank, and he wants to buy those equities from retail investors at firesale prices.  

Mon, 05/07/2012 - 18:14 | 2404897 SAT 800
SAT 800's picture

I'm voting for senility and hypocrisy; why should it be either/or?

Mon, 05/07/2012 - 14:04 | 2404116 Sandoz
Sandoz's picture

If you can't beat em, berate em. 

Mon, 05/07/2012 - 14:09 | 2404121 ebworthen
ebworthen's picture

Hollywood Diner - how quaint.

"A rich guy never has to pay for anything...har, har, har..."

Buffet makes me want to puke, on him.

Mon, 05/07/2012 - 14:35 | 2404231 Comay Mierda
Mon, 05/07/2012 - 14:07 | 2404126 Cdad
Cdad's picture

This guy will often contradict himself within a 30 second sound bite.  Good luck piggy backing whatever he says...and good luck trying to stay in the trade with him.

Mon, 05/07/2012 - 14:29 | 2404210 Cognitive Dissonance
Cognitive Dissonance's picture

Brother Cdad,

Whales don't contradict themselves. They just make a very large hole in the water whenever they want to.

Money (regardless of how it is acquired) is the ultimate soothing Cognitive Dissonance balm.

Mon, 05/07/2012 - 15:14 | 2404354 Cdad
Cdad's picture

Brother Cog,

My comment was more literal than that.  If you listen to him carefully, he contradicts himself within seconds of stating a position, and then laughs uncomfortably...the avuncular uncle thing.  At the level of his actual words, he is often contradictory.  

Mon, 05/07/2012 - 15:26 | 2404383 Cognitive Dissonance
Cognitive Dissonance's picture

I agree. He is a buffoon. Just being a smartass. :)

But it does add to his televised image of a grandfatherly old coot who just happens to be filthy rich. Nice public image manipulation actually.

One of these days he will fart on camera and the stock market will flash crash 10%. Or flash dash 10% depending upon which way the herd mentality is blowing at the moment.

Mon, 05/07/2012 - 17:40 | 2404808 Blankenstein
Blankenstein's picture

 Uncle Warren always preached conservative, value-oriented investing.  The generous terms of his 5 billion investment in Goldmans indicates a risky bet, contrary to the Buffett investing method.  So was it a safe play because he knew that the government was going to bail out the banks and AIG?  Either he is disingenuous or had access to inside information.  And let's not forget his large positions in derivatives, those financial weapons of mass destruction.  Ah shucks Warren, you are completely self-serving and cannot be trusted.  

Mon, 05/07/2012 - 20:50 | 2405243 The Real Fake E...
The Real Fake Economy's picture

warren's got major swagga

remember he was fighting the government a few years back asking to be given special exemption to not have to report his trades because people might front-run him?  whatever happened with that?  did obama give in and say sure, warren - whatever you want.  

Mon, 05/07/2012 - 14:07 | 2404129 John Law Lives
John Law Lives's picture

That SOB is an outspoken advocate of an onerous Federal Estate Tax.  Many will not weep the day he strokes out.

Mon, 05/07/2012 - 14:26 | 2404200 ProtectiveFather
ProtectiveFather's picture

Of course he is. Big non-liquid estates need big life insurance policies to cover the estate tax.

Mon, 05/07/2012 - 14:43 | 2404244 John Law Lives
John Law Lives's picture

"Big non-liquid estates need big life insurance policies to cover the estate tax."

Yes, they do.

"Of course he is."

... and many people despise him for it.  Many believe it is immoral that the Federal Government has the right to levy an onerous tax on someone's estate upon their death.

Mon, 05/07/2012 - 14:28 | 2404201 ProtectiveFather
ProtectiveFather's picture

 

 

Mon, 05/07/2012 - 14:07 | 2404130 midgetrannyporn
midgetrannyporn's picture

Buffett looks worse every day and I am enjoying it.

Mon, 05/07/2012 - 14:08 | 2404131 DaveyJones
DaveyJones's picture

hypocritic senility

not be confused with hippocratic senility

I hear greek medicine is tough to swallow

Mon, 05/07/2012 - 14:11 | 2404147 CrockettAlmanac.com
CrockettAlmanac.com's picture

Histrionic banality.

Mon, 05/07/2012 - 14:07 | 2404133 Deep79
Deep79's picture

Dont know why anyone gives this guy any attention. he was one of the biggest benificuires of all the bailouts.

He just got lucky, caught the biggest bull market in history, rode it's coat tails.

Just look at his performance sine bear market statred in 2000. 

No baiouts in 2009, what should have happen, that is FREE MARKET CAPITILSM, this old geezer goes broke

 

 

Mon, 05/07/2012 - 14:54 | 2404287 pkea
pkea's picture

that's exactly the problem with the system deep79 that the people are so stupid and continue to allow banks and Berkshire to get bailed out at their expense. good luck with that....always winning long bet on stupidity

Mon, 05/07/2012 - 14:09 | 2404136 Dr. Engali
Dr. Engali's picture

I went home for lunch and turned on CNBC I actually watched them beat up gold and silver ,recommending a short position in silver ,while at the same time hyping that piece of crap Facebook. I think the whole segment was about one minute long. That's all I could take of their propoganda.

Mon, 05/07/2012 - 14:14 | 2404162 5880
5880's picture

u guys don't listen very well

do you

Mon, 05/07/2012 - 14:48 | 2404269 pods
pods's picture

The facebook conflagration is going to be legen.............Wait for it.......dary.

 

Mon, 05/07/2012 - 14:54 | 2404290 Dr. Engali
Dr. Engali's picture

You forgot to sign off pods.

Mon, 05/07/2012 - 15:03 | 2404315 pods
pods's picture

Well since that was a Barney line I figured I wouldn't steal it by signing off.

pods

:)

Mon, 05/07/2012 - 14:09 | 2404138 carbonmutant
carbonmutant's picture

Gee what would an uncivilized person do?

Mon, 05/07/2012 - 14:13 | 2404159 Dr. Engali
Dr. Engali's picture

I don't know what an uncivilized person would do, but a civilized person would bomb some brown people into submission and take their gold....and their oil while they are at it.

Mon, 05/07/2012 - 14:21 | 2404180 Cognitive Dissonance
Cognitive Dissonance's picture

And then "loan" them the money to rebuild as a civilized Ponzi nation.

Mon, 05/07/2012 - 16:10 | 2404546 DaveyJones
DaveyJones's picture

That reminds me: Nice interview with Steve Coll on the civilized empire of Exxon:

http://www.democracynow.org/2012/5/7/exxonmobils_dirty_secrets_from_indonesia_to

Mon, 05/07/2012 - 14:10 | 2404139 Sudden Debt
Sudden Debt's picture

If you actually type senile and buffet in youtube, this is what you get:
http://www.youtube.com/watch?v=KMvQPeBAesw&sns=em
Eeuuuhh.. Eeuuuhhh deeuuuuhhhh'....eeeuuuhhhh..eeeuuddd..deeuuhh....

Mon, 05/07/2012 - 18:20 | 2404916 SAT 800
SAT 800's picture

Good for you ! That's what we need, more serious researchers !. More Waffles !

Mon, 05/07/2012 - 14:11 | 2404142 HANKREARDON
Mon, 05/07/2012 - 14:11 | 2404143 TwoJacks
TwoJacks's picture

I for one can hardly wait for this fucker to be dead. I am so sick and tired of hearing about the great warren buffett

Mon, 05/07/2012 - 14:16 | 2404161 ebworthen
ebworthen's picture

"Buffet is Bones!" party planning time.

Mon, 05/07/2012 - 14:11 | 2404150 DonutBoy
DonutBoy's picture

It means he expects to have opportunities to buy businesses he likes at a discount shortly.  It means no QE3 until we have another large drop in equity prices.

Mon, 05/07/2012 - 14:20 | 2404153 Cognitive Dissonance
Cognitive Dissonance's picture

Buffett is the supported dream for the slave nation.

"Some day I could be just like him and leave this life of debt slavery behind. Just work hard, mind da boss and maybe, just maybe, I can be a Buffett too."

Gotta let the slaves think they can make it big so they work that much harder in the salt mines. I've been guilty of this mindset at one point in my life so I'm not calling the pot black.

It's called the slave mentality and while it appears to be completely different from the 17th century slave trade, it is almost exactly the same. The standard of living is just a bit higher. And the cost (to the slave owners) for allowing that higher living standard is more than offset by the dramatically increased productivity from the seemingly sated slaves.

For now.

Welcome to modern plantation living boys and girls.

Mon, 05/07/2012 - 14:32 | 2404226 Body of Lies
Body of Lies's picture

As long as I have American Idol, DWTS, UFC and ZH what else do I need?

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