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Suck It Up Buffett: BRK/A Below $100,000 For First Time In 20 Months

Tyler Durden's picture




 

Following yesterday's 1-2 BAC/WFC downgrade double penetration (which the market will very soon realize has substantial impacts on money market and other prime money access) performed on ye olde' Octogenrian of Omaha by Moody's (in which, adding insult to injury, Buffett is an investor as well) the market has had a violent reminder that Berkshire is nothing but a procyclial and levered derivative of downside market risk courtesy of the "insurance" company's massive bet that the market will only go up, yes we are talking about all those sold index puts. As a result, for the first time in 20 months, anyone owning a share of BRK/A can no longer say they have over $100,000 with the stock dropping to 99,275. And if, as the market indicates, Buffett's buddies at the global central planning committee no longer have control of the markets, pretty soon the thousands separator comma will be converted into a decimal point.

 

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Thu, 09/22/2011 - 10:44 | 1696917 Stumpy
Stumpy's picture

My call? The company will survive.

Thu, 09/22/2011 - 10:47 | 1696931 Frog-And-Toad
Frog-And-Toad's picture

The Fed will be replaced with "The Birkshire People's Bank", which will bring Obama a landslide win in 2012.  

Ron Paul will lead the revolution to take back the country... Civil unrest will ensue 

Thu, 09/22/2011 - 10:53 | 1696968 Stumpy
Stumpy's picture

Does Canadians play a role in this? We stay best friends with the US, right?

Don't change your mind on this one.

Thu, 09/22/2011 - 11:04 | 1697011 InconvenientCou...
InconvenientCounterParty's picture

The U.S. doesn't have friends or allies in a conventional sense.

Just understand where you fit in the corporate gears. Don't apply human attributes to a machine.

Thu, 09/22/2011 - 11:08 | 1697026 Stumpy
Stumpy's picture

What about you? Can we be friends?

Thu, 09/22/2011 - 12:39 | 1697562 TruthInSunshine
TruthInSunshine's picture

After raping taxpayers for a minimum of 17 billion via the TARP and AIG Rescue Packages (which rescued many, many counterparties of AIG and holdings of Buffett), and probably having received government (ala taxpayer) largess many times over that amount through the years, it would be pure & sweet poetic justice to see Buffett and Munger both die impoverished, like rats in the filthy back alleys of some slum.

Thu, 09/22/2011 - 11:19 | 1697097 Mitzibitzi
Mitzibitzi's picture

Yeah, was watching a documentary the other night about the 'Plan Red' scenarios in the 30s; invade Canada and take on the British Empire for control of the world.They even went so far as to build 2 'civilian airfields' and one more made from perforated runway matting (so the grass would grow through it and hide it from observation, apparently).

Interesting to watch.

http://en.wikipedia.org/wiki/War_Plan_Red

Seems the US has never had friends or allies in a conventional sense.

Thu, 09/22/2011 - 11:27 | 1697137 mophead
mophead's picture

"double penetration"

-> images.google.com -> SafeSearch off

Enjoy.

Thu, 09/22/2011 - 11:40 | 1697212 FMR Bankster
FMR Bankster's picture

People have friends. Countries just have interests. And sometimes other conuntries interests match ours. That's pretty much the case with Canada. They have oil to sell, we need to buy oil, ect, ect.

Thu, 09/22/2011 - 11:46 | 1697252 Stumpy
Stumpy's picture

Do you honestly think American soliders would like to invade Canada? In war, you have to have hate or fear of your enemy.

I would like to think that there is a lot of shared families between our borders.

People have friends and families. Countries are made of people.

Thu, 09/22/2011 - 11:09 | 1696980 Don Birnam
Don Birnam's picture

As with other notable -- or rather, notorious -- names of late ( NFLX, HPQ...you recognize the pattern ), Fidelity is also a large institutional holder of BRK ( A and B ). Indeed, FMR's flagship Contrafund lists Berkshire-A as the third largest holding. 

On the Barry O'Bama/Uncle Warren front, Buffett is participating in a Chicago fundraiser for Obama 2012. Sorry, people: plutocrats and crony capitalists only, as it is a $38,000-a-plate affair. 

Thu, 09/22/2011 - 11:21 | 1697113 Withdrawn Sanction
Withdrawn Sanction's picture

What, no deeply discounted $25,000 plates near the kitchen door? 

Thu, 09/22/2011 - 11:56 | 1697331 Jay Gould Esq.
Jay Gould Esq.'s picture

Discounts are available, but the main entree will be provided by Hardee's. Dessert courtesy of Friendly's.

Thu, 09/22/2011 - 11:03 | 1697007 EscapeKey
EscapeKey's picture

You need to throw in the words "glorious" and "democratic" in there as well.

Thu, 09/22/2011 - 11:09 | 1697030 Moneyswirth
Moneyswirth's picture

Yes.  And Secretary of Extra-Terrestial Affairs Kucinich will push for a ban on all earthly currency.

Thu, 09/22/2011 - 10:57 | 1696983 RemiG2010
RemiG2010's picture

Yes. But will the patient live?!

Thu, 09/22/2011 - 10:59 | 1696987 Stumpy
Stumpy's picture

It depends on how patient you are.

Thu, 09/22/2011 - 11:02 | 1697000 AccreditedEYE
AccreditedEYE's picture

Probably Stumpy, but in what form? They may keep it together while the Old Balls is alive and well but the moment he kicks the can you'll see calls to carve it up and feed it to private equity. (which would make the old man spin in his grave) I'm very pleased to see catastrophe claims and a weakening economic backdrop hitting at the same time as it will put pressure on earnings... oh, and he can kiss his BAC investment goodbye too.

Thu, 09/22/2011 - 11:11 | 1697043 Stumpy
Stumpy's picture

If there is some sort of Ponzi Scheme Ethics (PSE?), US owes one to Buffet and its company. Buffet agrees to ride a cycle down, but to be one the best cycle up.

Thu, 09/22/2011 - 11:24 | 1697125 AccreditedEYE
AccreditedEYE's picture

Perhaps...if he's alive by then.

Thu, 09/22/2011 - 11:42 | 1697230 Stumpy
Stumpy's picture

His mind is cloned on a supercomputer somewhere. His DNA has been fully sequenced. His body will be frozen in carbonite. He will ride the next leg up!

Thu, 09/22/2011 - 10:47 | 1696919 GeneMarchbanks
GeneMarchbanks's picture

HH called it! Five figures to stay?

'And if, as the market indicates, Buffett's buddies at the global central planning committee no longer have control of the markets, pretty soon the thousands separator comma will be converted into a decimal point.'

Long Overdue.

Thu, 09/22/2011 - 10:45 | 1696922 CaptFufflePants
CaptFufflePants's picture

Hey how much has he lost on his BAC investment? I remember the headlines on the day he invested everyione was like Buffet made over 1 billion today what a genius, then nothing, silence.

 

How much has he lost?

Thu, 09/22/2011 - 10:46 | 1696924 bania
bania's picture

Maybe Gates can short BRK with the proceeds going to his foundation?

Thu, 09/22/2011 - 10:46 | 1696926 lolmao500
lolmao500's picture

So when is this POS will have a heart attack?

Thu, 09/22/2011 - 11:12 | 1697057 Momauguin Joe
Momauguin Joe's picture

I've got Charlie in my Dead Pool for this year.

Thu, 09/22/2011 - 11:44 | 1697244 mynhair
mynhair's picture

Gasbagarino or Munger?

Thu, 09/22/2011 - 11:47 | 1697264 Momauguin Joe
Momauguin Joe's picture

Munger

Thu, 09/22/2011 - 10:48 | 1696932 Cognitive Dissonance
Cognitive Dissonance's picture

I love the smell of napalm in the morning.

http://www.youtube.com/watch?v=sBksHaTQCbU

Thu, 09/22/2011 - 10:48 | 1696935 ABG LINE
ABG LINE's picture

LoL!

Thu, 09/22/2011 - 10:49 | 1696937 saulysw
saulysw's picture

It's the "buffett tax" in action.

Thu, 09/22/2011 - 10:49 | 1696940 jcmjr
jcmjr's picture

BAC is kicking his ass!! Right on!!

 

Thu, 09/22/2011 - 10:49 | 1696941 Sutton
Sutton's picture

Is he still short all of those puts?

He'll die broke.

Thu, 09/22/2011 - 10:49 | 1696945 falak pema
falak pema's picture

time for Oligarch bashing at ZH. Well, well, there are some who put their money to save king and country, like true soldiers. Having said that, I think behind the scenes if not on this play, then on others, there will be repayment through "regulatory capture" to soldier-Oligarch. Love the sound of that catch phrase...

Thu, 09/22/2011 - 10:50 | 1696948 Archimedes
Archimedes's picture

Yeah and BAC is at 6.22. Nearly a dollar lower than his buy in price. Ha! I would rate this event Quadruple A!

Thu, 09/22/2011 - 11:02 | 1696991 Mercury
Mercury's picture

He didn't buy the common although he got warrants thrown into the deal to buy some at around $7 I think.

He's the richest man in the world for a reason...

Thu, 09/22/2011 - 11:10 | 1697024 Archimedes
Archimedes's picture

The richest man in the world? Sure if you can get Govt guarantees on your investments. Ok dipshit..perhaps you are planning on taking Becky Quick's place fellating the Oracle?

 

http://finance.yahoo.com/career-work/article/113540/forbes-400-richest-americans-2011.html?mod=career-leadership

Thu, 09/22/2011 - 11:41 | 1697224 Mercury
Mercury's picture

Oh my goodness look at that...second richest man in the world.  You got me.

The assets behind BRK (and Warren's wealth) are arguably more robust that Bill's are however.

Thu, 09/22/2011 - 11:48 | 1697269 Archimedes
Archimedes's picture

You obviously can't read. The article says nothing about Richest in the World.

Thu, 09/22/2011 - 12:10 | 1697398 Mercury
Mercury's picture

Whatever.  So he's #3 in the world. BFD

He's the third richest man in the world for a reason....

There - you happy now?

And again, I think I'd rather have Buffett's portfolio than Carlos Slim's even if Slim's is currently higher on a mark to market basis.

Thu, 09/22/2011 - 10:51 | 1696958 SDRII
SDRII's picture

f r e e f l o a t........i n g a w ay

Thu, 09/22/2011 - 10:57 | 1696961 Mercury
Mercury's picture

BRK doesn't have much of a history of stock buybacks...be interesting to see if/when they go there again...

They still have...what ~$40b in cash?

Thu, 09/22/2011 - 10:52 | 1696963 xtop23
xtop23's picture

 Id love to see Buffett die penniless.

Thu, 09/22/2011 - 10:52 | 1696964 RobotTrader
RobotTrader's picture

Buffet is now the most hated businessman in America.

Even "Bathtub" Becky has lost interest.

Thu, 09/22/2011 - 11:05 | 1697014 Cleverbot
Cleverbot's picture

And what business are you in?

Thu, 09/22/2011 - 10:52 | 1696965 mr1963
mr1963's picture

Maybe buffet and Kruglass can dial up an alien invasion...

Thu, 09/22/2011 - 10:53 | 1696969 ziggy59
ziggy59's picture

now he really will pay less taxes...

Thu, 09/22/2011 - 10:54 | 1696971 Smiley
Smiley's picture

But leverage and high speed trading add liquidity to the markets; LIQUIDITY!

 

Thu, 09/22/2011 - 10:54 | 1696973 Dr. Engali
Dr. Engali's picture

At least he won't have to pay capital gains taxes.  We wouldn't want him to go hungry.

Thu, 09/22/2011 - 10:54 | 1696974 Smiddywesson
Smiddywesson's picture

My favorite holding time?  Forever.

HAHAHAHAHA

The poster boy for buy and hold retires in disgrace.  I love it.

Thu, 09/22/2011 - 10:54 | 1696976 disabledvet
disabledvet's picture

Word is the entire State of Nebraska is riding on this guy being right as well. GO CORNHUSKERS!

Thu, 09/22/2011 - 10:55 | 1696979 hunglow
hunglow's picture

What a way to go.

Thu, 09/22/2011 - 10:57 | 1696984 spiral galaxy
spiral galaxy's picture

Mmm, down 20% on the year!  I guess that means his taxes will be lower than his secretary's? :-)

Thu, 09/22/2011 - 10:57 | 1696986 kurzdump
kurzdump's picture

Bank run in Germany? Rumors about Commerzbank limiting pay-out to 2000 €

Thu, 09/22/2011 - 10:59 | 1696990 downtownshuter
downtownshuter's picture

So why does everyone here hate Buffett? And is ZH really predicting the stock will drop 99%? I guess it will be another conspiracy when it is still over $1,000 in a few years.

Thu, 09/22/2011 - 11:07 | 1697022 xtop23
xtop23's picture

 Because hes just another example of the parasites that are sucking this country dry. He made his wealth off of insider trading and utilizing political contacts.

 Now this isnt new, theres a lot of guys doing it.

 But why shouldn't I enjoy watching someone taking a haircut, that has all those advantages, when a lot of the common people in the market ( if there even is any more ) are getting fucked.

 I hope he ends up on a heart lung machine after today.

 That is all.

Thu, 09/22/2011 - 11:41 | 1697216 downtownshuter
downtownshuter's picture

I just think with all the evils in government and politics he ranks pretty low on the scale of people ruining the world. He doesn't ask for bailouts, he doesn't take risks or leverage to the extent of the big banks, he suggests that everyone who leads a company into bankruptcy or bailouts should be left completely broke. I don't think he holds a candle to the big bankers, the HFTs, the bernank, and most government officials. It just seems like misdirected hate and the whole double penetration-i hope he dies broke-i hope he ends up on a lung machine today could be reserved for someone else. How is he sucking the country dry?

Thu, 09/22/2011 - 11:41 | 1697218 downtownshuter
downtownshuter's picture

I just think with all the evils in government and politics he ranks pretty low on the scale of people ruining the world. He doesn't ask for bailouts, he doesn't take risks or leverage to the extent of the big banks, he suggests that everyone who leads a company into bankruptcy or bailouts should be left completely broke. I don't think he holds a candle to the big bankers, the HFTs, the bernank, and most government officials. It just seems like misdirected hate and the whole double penetration-i hope he dies broke-i hope he ends up on a lung machine today could be reserved for someone else. How is he sucking the country dry?

Thu, 09/22/2011 - 11:11 | 1697039 InconvenientCou...
InconvenientCounterParty's picture

If you are an advocate for Buffet on this forum, you should suggest an alternate target for the excess anger and hate.

I suggest naming names. Any jewish sounding last name will do. Prove you belong here.

Thu, 09/22/2011 - 11:15 | 1697078 Stumpy
Stumpy's picture

Blame it on Canada?

Thu, 09/22/2011 - 11:26 | 1697134 Mitzibitzi
Thu, 09/22/2011 - 11:40 | 1697213 Stumpy
Stumpy's picture

Bring it on, Bitches!

Thu, 09/22/2011 - 11:45 | 1697247 downtownshuter
downtownshuter's picture

I am not an advocate for Buffett. Just trying to understand the hate because I don't. Just because I don't hate him doesn't mean I love him.

Thu, 09/22/2011 - 13:03 | 1697681 fastishplastic
fastishplastic's picture

if you choose, as i do, to try whenever possible (and this isn't often) to keep things simple, than in my mind wb represents the most fundamental of our financial and economic morass - moral hazard. just think of his bac deal recently.

of course there are many other reasons to severely dislike and question the man, think his exclusive cheeseburger and cheery coke diet, or his affinity for becky quick, or his lack of investing acumen, or his msm demagog status - these all piss me off.    

Thu, 09/22/2011 - 10:59 | 1696992 pantheo
pantheo's picture

Buffet is a major stockholder of Moody's. There is not even a slight chance that he wasn't aware that this is coming....

Thu, 09/22/2011 - 11:01 | 1696995 TraderMark
TraderMark's picture

[Video] Stephen Roach takes U.S. Fed policy (and government) to task this morning on CNBC, then talks about China

http://www.fundmymutualfund.com/2011/09/video-stephen-roach-us-did-not-l...

Thu, 09/22/2011 - 11:02 | 1696996 TraderMark
TraderMark's picture

Waiting for Buffet to buy preferred stock of Greece...

Thu, 09/22/2011 - 11:02 | 1696997 Lets Hang Parliament
Lets Hang Parliament's picture

In Cockney slang there's a word that rhymes with Berkshire Hunt...I wonder what that could be?! Hence the term "he's a "Berk"!

Thu, 09/22/2011 - 11:02 | 1697003 Cone of Uncertainty
Cone of Uncertainty's picture

Dude, Becky Quick is going to queef on you for this post.

Thu, 09/22/2011 - 11:08 | 1697025 Momauguin Joe
Momauguin Joe's picture

You'd think the old fool would spring for a new set of teeth for that horsehead.

Thu, 09/22/2011 - 11:04 | 1697012 John Law Lives
John Law Lives's picture

Couldn't happen to a nicer guy...

Buffet is an outspoken advocate for an onerous Federal Estate Tax. He believes Uncle Sam is ENTITLED to collect a stiff Federal Estate Tax upon the death of the bearer of wealth. That is a purely rotten notion (imo).

Thu, 09/22/2011 - 11:12 | 1697052 Josh Randall
Josh Randall's picture

Sleaze bag in a warm old man/Grand Dad wrapping paper from all I've learned about him

Thu, 09/22/2011 - 11:33 | 1697164 I am a Man I am...
I am a Man I am Forty's picture

it's evil, stealing a person's assets when they die, fucking grave robbers

Thu, 09/22/2011 - 11:05 | 1697013 sabra1
sabra1's picture

"The Buffet Bank" all you can borrow, for one small fee!

Thu, 09/22/2011 - 11:06 | 1697017 Seasmoke
Seasmoke's picture

looks like Warren has outlived his reputation

Thu, 09/22/2011 - 11:27 | 1697138 Withdrawn Sanction
Withdrawn Sanction's picture

Touche'.  WB rode the largest bull market(s) in history w/his "value" investing approach. 

As the old saying goes:  Never confuse genius and a bull market.  Warren is no genius.   

Thu, 09/22/2011 - 11:06 | 1697018 Zeff
Zeff's picture

RIP Bruce!

Thu, 09/22/2011 - 11:10 | 1697037 Moneyswirth
Moneyswirth's picture

El-Erian:  "World is on the eve of the next financial crisis"

Thought we were at dawn at least

Thu, 09/22/2011 - 11:14 | 1697064 GrinandBearit
GrinandBearit's picture

Come on Uncle Warren, please throw a few more billion at C, AIG and GM... please.

Any minute they'll trot him out telling the sheeple to "buy America!" - guaranteed.

I hope he dries up and blow away.    

Thu, 09/22/2011 - 11:16 | 1697080 JLee2027
JLee2027's picture

Mr. Buffett is indisposed at the moment. He's still playing in the bathtub.

Thu, 09/22/2011 - 11:28 | 1697141 Withdrawn Sanction
Withdrawn Sanction's picture

He's still playing in the bathtub.

With his new hair dryer???

Thu, 09/22/2011 - 12:19 | 1697154 NuYawkFrankie
NuYawkFrankie's picture

I'm Warren Buffet and I like to preen

'specially with Becky on the tee-vee screen.

I'm the 'Oracle of Omaha' dont you know

With my snout buried deep in bailout-dough.

It's inside-deals after which I hunger

If you dont believe me - go ask Charlie Munger!

While pleadin' in public to pay more tax

I'm shovellin' bank-liabilities onto your backs!

'Cause after all - though I do like to preen,

I'm the world's biggest Welfare Queen!

But it dont really matter - 'cause to plain ol' folk

I'm just Good ol' Warren there sipping my coke!

 - The WallSt Rapper

Thu, 09/22/2011 - 11:41 | 1697200 Coldfire
Coldfire's picture

<<whilst shaking head, cueing music>> Anacle, Anacle, what are they feeding you? Anacle, Anacle, it's not your fault.

Thu, 09/22/2011 - 11:42 | 1697231 lynnybee
lynnybee's picture

yea ............ suck it up, Buffet .      a-hole.

Thu, 09/22/2011 - 11:48 | 1697268 Stumpy
Stumpy's picture

PM are melting down. Glowing red eveverwhere.

See ya when it starts glowing green again.

Thu, 09/22/2011 - 12:52 | 1697620 fastishplastic
fastishplastic's picture

when can wb exercise those warrants and get out of bac? anytime?

Thu, 09/22/2011 - 13:05 | 1697691 MFL8240
MFL8240's picture

Hope the scumbag losses everything!  Shit company that should have gone under if not for Govt bailouts in 2009.  Hopefully the Old asshole will buy some more BAC??

Thu, 09/22/2011 - 13:40 | 1697856 TheArmageddonTrader
TheArmageddonTrader's picture

How dare Moody's suggest that BAC might not be bailed out. What are they suggesting, that politicians' promises not to bail out any more banks were serious? That politicians have integrity? They've really gone off the rails.

Thu, 09/22/2011 - 14:11 | 1697966 onearmedlove
onearmedlove's picture

Are you guys really mocking a guy whose company's shares trade now in the measly 5 figures?

Thu, 09/22/2011 - 14:44 | 1698153 TheArmageddonTrader
TheArmageddonTrader's picture

yes

Thu, 09/22/2011 - 14:46 | 1698164 TheArmageddonTrader
TheArmageddonTrader's picture

But I don't think he's stupid, just corrupt. He's betting on a bailout, like he successfully did with Goldman. Helps when you're buddies with the pres.

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