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Warren Buffett's Philosophy On Investing In Banks

Tyler Durden's picture




 

In light of last week's surprise announcement of Buffett's bailout redux of Bank of America (the first one being Goldman back in 2008), and following today's even more surprising objection by the FDIC which threatens to scuttle the Bank of Ameria settlement and force Bank of Countrywide Lynch to raise far more capital, pushing Warren to double down on his investment throwin more good money after bad, especially if the legal case moves from an Article 77-friendly NY state court to Federal, here are the philosophical thoughts from the Berkshire's oracles contained, in his "Collected Writings", on his desire to put money into banks.

And we quote:

The banking business is no favorite of ours. When assets are twenty times equity-a common ratio in this industry-mistakes that involve only a small portion of assets can destroy a major portion of equity. And mistakes have been the rule rather than the exception at many major banks. Most have resulted from a managerial failing that we described last year when discussing the "institutional imperative:" the tendency of executives to mindlessly imitate the behavior of their peers, no matter how foolish it may be to do so. In their lending, many bankers played follow-the-Ieader with lemming-like zeal; now they are experiencing a lemming-like fate.

 

Because leverage of 20:1 magnifies the effects of managerial strengths and weaknesses, we have no interest in purchasing shares of a poorly-managed bank at a "cheap" price. Instead, our only interest is in buying into well-managed banks at fair prices.

Perhaps a better title for this post would "Buffett on lemmings"...

Full humorous musings:

 

h/t Geoffrey Batt

 

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Mon, 08/29/2011 - 17:57 | 1613181 TruthInSunshine
TruthInSunshine's picture

Warren Buffett likes Coca-Cola, Dairy Queen, Nebraska Furniture, baseball, apple pie & Chevrolet, and he has the pure, salt of the earth wisdom, and gentle ways of the most loving grandfather.

 

Obama 2012 election campaign quote (so get used to it): 

"And Warren Buffett agrees...[blah blah blah telemprompter]"

Mon, 08/29/2011 - 17:58 | 1613198 Id fight Gandhi
Id fight Gandhi's picture

Insider information and manipulation go a long way. You don't think you can make billions doing things the honest way do you?

Mon, 08/29/2011 - 18:35 | 1613293 bigdumbnugly
bigdumbnugly's picture

the formula:

buffet in bathtub + bubbles therein + lecherous thoughts of becky quick + coincidental redline phone call

multiplied by

inside info - fast and easy money off sheepsuckers to follow - altruistic good ol' boy veneer 

equals

$$$ squared for the ol' oracle

 

 

 

 

Mon, 08/29/2011 - 19:59 | 1613460 Hugh G Rection
Hugh G Rection's picture

Warren Buffets Philosophy On Investing in Banks.

 

* See Gordon Geckos philosophy on investing in Airlines.

Mon, 08/29/2011 - 20:12 | 1613489 cgbspender
cgbspender's picture

Blue horseshoe loves BAC.

Mon, 08/29/2011 - 21:05 | 1613613 spiral_eyes
spiral_eyes's picture

Buffett's philosophy on banks:

Beat self over head with blunt instrument. 

Mon, 08/29/2011 - 21:20 | 1613652 Thomas
Thomas's picture

Put him in Matt Simmons' tub. He is such a liar.

Mon, 08/29/2011 - 19:01 | 1613344 Caviar Emptor
Caviar Emptor's picture

Yes...just pick up the phone...talk to the Prez. Get in the tub and get a brilliant insight, a piece of genius: why not just piggy back onto a huge taxpayer-funded gov stimulus plan that will be a back door bailout to BAC? 

That's what I call "free-market capitalism" at its finest! 

Mon, 08/29/2011 - 20:18 | 1613503 Barbar
Barbar's picture

free markets are an illusion... this is the norm. capitalism does not work without corruption and class warfare. it's so obvious now that it takes a genius not to notice it.

Mon, 08/29/2011 - 22:24 | 1613785 Hustler Elite
Hustler Elite's picture

Central banking and free markets cannot co-exist, when you have one you cannot have the other.

We have not had anything even resembling a free market in the US in close to 100 years.

Tue, 08/30/2011 - 10:05 | 1614575 writingsonthewall
writingsonthewall's picture

Intervention is a result of free market failure, we HAD free market capitalism but it doesn't work well with humanity because too many people will fuck each other over for a buck.

Free markets could never work, and it's been proven. This fantasy land of 'let the market decide' is total crap, often spoken by those who wouldn't have to stand outside your local bank and explain tot he mob that 'sorry, all your savings have gone, it's the free market you know'....shortly before being torn limb from llimb.

The sooner people give up this fantasy the better.

Face facts, unless you're warren and able to buy banks with 'spare cash' then you're a loser in capitalism, no matter what you tell yourself about 'I'm doing ok'.

The system only keeps going because of the cretins who believe in it, just like a ponzi scheme.

Mon, 08/29/2011 - 18:01 | 1613212 Cdad
Cdad's picture

...until he blatantly supports a candidate for president with Marxist tendencies, or when he is writing his treatises on population control....at which time he goes from loving grandfather to dangerous fellow with enough money to fund all of the worst things [like Marxists or crony corporations that have almost destroyed America] exactly at that point in time when he is approaching prime dementia years.

Sweet!  Go grandpa....ALL IN ON Blight on America Bank!

Mon, 08/29/2011 - 18:50 | 1613320 Barbar
Barbar's picture

the liberal usage of marx here is completely random at best and rather ironic given that capitalism has eaten itself the way he predicted.

Mon, 08/29/2011 - 19:11 | 1613357 IrritableBowels
IrritableBowels's picture

+1, prole.

Mon, 08/29/2011 - 19:18 | 1613363 nonclaim
nonclaim's picture

Eaten not by capitalism (a concept defined by Marx himself, in this context) but by the Marxists disguised as "capitalists" as he envisioned it.

The fault is in believing the label while glazing over the rotten content.

Mon, 08/29/2011 - 20:06 | 1613450 Barbar
Barbar's picture

eaten by decreasing marginal profitability, monopoly-seeking, rent-seeking, concentration of wealth, imperialism (read vietnam/iraq/afghanistan/libya/cia/[insert imperialist war du jour here]) and compound interest... everything else is hokus pokus...

Mon, 08/29/2011 - 20:13 | 1613490 cgbspender
cgbspender's picture

Those are actually symptoms of statism, sir.

Mon, 08/29/2011 - 20:22 | 1613508 Barbar
Barbar's picture

capitalism is not possible without the capitalist state protecting capitalists' interests. it has always been that way. now that it's so blatantly obvious, the average us citizen has started to notice. progress.. 

Mon, 08/29/2011 - 20:50 | 1613550 nonclaim
nonclaim's picture

Your overuse of capitalism/ist does not make it so. When you stop rationalizing and *see it* for what it is you'll realize they are Marxists. The country is being increasingly run by marxists, more and more, while they in unison blame the "capitalists" (but really themselves, as defined by Marx) and you take it like a well programmed/brainwashed human that you are.

When the "fat cat capitalists" are labeled so they accept it. It is their team role to take the blame.

I hope you understand it because you'll then see a lot more with clear eyes. But I don't really think you'll...

Mon, 08/29/2011 - 21:04 | 1613607 Bring the Gold
Bring the Gold's picture

Marxists? WTF people! This is Fascism come on! Corporations and Government working together to form a behemoth aparatus that grinds away the common man. These guys are about as Marxist as Adolph fucking Hitler and I mean EXACTLY as Marxist as Hitler.

Let me conclude by saying fuck Marx, fuck Hitler and fuck this bullshit mess by whatever label our government has turned into. A sad, sad day in America no matter what label you want to put on this steaming pile.

 

Mon, 08/29/2011 - 21:12 | 1613626 nonclaim
nonclaim's picture

They are mostly the same.

But let us disagree on the name/thing and agree that, whatever it is, it is bad and should be fought with mind and body... till the end.

Mon, 08/29/2011 - 21:15 | 1613641 Bring the Gold
Bring the Gold's picture

We can agree to disagree on the label (which I note is often divisive). Far more important that people agree that the monster one attempts to describe is indeed a menace to all.

It needs to be  reclaimed, reformed, reshaped, and redirected. Let us all pray it's not too late for a peaceful outcome. At the very best the hour is late indeed.

Tue, 08/30/2011 - 07:26 | 1614181 Pay Day Today
Pay Day Today's picture

Sorry the US is not a Marxist run society. If it was, ordinary workers would own the means of production, finance and distribution themselves, and they would pay the economic surplus generated to themselves.

They don't, so its not.

The US is a KLEPTOCRACY.

Tue, 08/30/2011 - 02:41 | 1613642 GoinFawr
GoinFawr's picture

You`ve got your work cut out for you Babar. I believe you'll find that a disappointingly large portion of ZH`ers conflate Marx with, well, anything they don`t like and a lot of other stuff they don't understand, no matter how unrelated. Loudly.

For some here it's the preferred version of Godwin's Law.

Mon, 08/29/2011 - 20:52 | 1613581 Zero Govt
Zero Govt's picture

Marx didn't define capitalism (i think i'm the only person in history that has properly defined it to date) ...instead Marx defined the chip on his shoulder (jealousy) and an idealised world where his moronic philosophy would work

...if he understood capitalism, like all the socialists in history, he'd understand why it wouldn't work ...but reality is not the idealists strong point 

Mon, 08/29/2011 - 21:11 | 1613615 nonclaim
nonclaim's picture

Quoting myself,

a concept defined by Marx himself, *in this context*

I should have said in *his* context. He needed an excuse, so, like a good politician, he created an enemy and put a label on it. The thing is that not many are stupid enough to, paraphrasing badly, "sell the rope used to hang themselves". That's why his class revolution is taking so long to happen, thankfully.

So, they need to create this class of "evil capitalists" but it takes a lot of money and a bunch of willing/washed morons to take the blame. Funding used to be from drugs... still is but seems that there are much easier ways now. I'll leave it at that.

Tue, 08/30/2011 - 06:30 | 1614149 Barbar
Barbar's picture

funny.. i learn from this thread that there are "good" capitalists and "bad" capitalists.. only if it were for good capitalists everything would be fine... there are no good/bad capitalists. concentration of wealth and diminishing marginal profitability lead to rent-seeking, monopoly seeking, corruption and imperialism for all eyes willing to see. it was always like this. it always will be. good thing the us citizen is at least seeing the present corruption. maybe with some critical thinking he will also connect the dots and see the omnipresent corruption indogenous to capitalism. the tale of perfectly competitive free markets is a tale. there never has existed one there never willl.. maybe fruit/vegetable markets, which now are facing extinction brought to you by the wonderful capitalist monopoly-seeking inventions of monsanto...

the us entered the first world war by organising false flag attacks on its vessels so that capitalists could sell nerve gas to both sides. the us entered the second world war by allowing japs to bomb pearl harbor so that capitalists could make more money. the us organised another false flag attack on ny and killed 1 million iraqis so that oil could keep flowing and haliburton could make a few bucks meanwhile. there's no "clean" version of capitalism. wake up!

and for the nth time.. no, obama is not a marxist. if he were, he would not be waging imperialist commodity wars in afghanistan and socialising bank losses. marx would probably be severly frustrated if he knew people called slick imperialist puppets marxists... 

Tue, 08/30/2011 - 06:43 | 1614157 nmewn
nmewn's picture

Communists & fascists are just bickering brothers spawned from the same demon. 

They both promote the state as superior to the individual.

It would be difficult for me to pick between them in a line up...but I can say my second shot would settle the matter.

Tue, 08/30/2011 - 07:34 | 1614189 Pay Day Today
Pay Day Today's picture

Individuals aren't important in the current American system. Unless you have a net worth over $10M that is.

Tue, 08/30/2011 - 18:26 | 1616809 nmewn
nmewn's picture

We shall see ;-)

Tue, 08/30/2011 - 05:12 | 1614120 Freewheelin Franklin
Freewheelin Franklin's picture

Syndicalism, or unionism, is loosly based on Marxist economics, or "Labor Theory of Value". Carl Menger and Eugen von Böhm-Bawerk showed us that all value is "subjective", based on the principle of "diminishing marginal utility".

Capitalism has not eaten itself as Marx predicted, Capitalism has been destroyed by hostile forces as Joseph Schumpeter predicted.  

Mon, 08/29/2011 - 18:03 | 1613220 Landrew
Landrew's picture

Warren (Mr. Potter) Buffett is all about self sacrifice. Mr. Potter would never foreclose on the middle class would he?

Mon, 08/29/2011 - 18:06 | 1613230 TruthInSunshine
TruthInSunshine's picture

Aha!

Warren Buffet's investment in BAC is altruistic, and he plans on saving orphans and widows from being foreclosed upon!

He's a great man, this Warren Buffett [senator's son].

Mon, 08/29/2011 - 18:07 | 1613235 IMA5U
IMA5U's picture

He also likes hookers, money and power

 

And pretending he is folksy.  He's a smart guy.  People buy into it.

Mon, 08/29/2011 - 21:31 | 1613668 bugfixx
bugfixx's picture

Becky Quick is a hooker?

Mon, 08/29/2011 - 17:54 | 1613182 nope-1004
nope-1004's picture

Crony capitalist.

Mon, 08/29/2011 - 18:24 | 1613273 Freddie
Freddie's picture

Drudge's has a link to the NY Post. The article is about how Berkshires owes the IRS back taxes as far back as 2002!   Buffett is a slimeball.

Mon, 08/29/2011 - 19:01 | 1613345 NotApplicable
NotApplicable's picture

Slimeball? Buffet is always going on about how he doesn't pay taxes, so you've got to give him credit for honesty.

Mon, 08/29/2011 - 17:54 | 1613183 lolmao500
lolmao500's picture

Yeah the FDIC opposes it because they don't have enough information... till they get ``more information`` they'll be for it... or for a ``better deal`` for those sons of a whore at BAC.

Mon, 08/29/2011 - 17:55 | 1613185 IMA5U
IMA5U's picture

I hope The Thief of Omaha's attempt to be remembered as "The Greatest Investors" fails.

It is easy to be great when the deck is shuffled in one's favor.

Mon, 08/29/2011 - 17:56 | 1613188 Id fight Gandhi
Id fight Gandhi's picture

Buy and hold my ass. He does backdoor sweetheart vulure deals. If he believed in BAC he would have bought the common. Fuck this.

Mon, 08/29/2011 - 20:08 | 1613477 Lazlo Toth
Lazlo Toth's picture

+1 correct.

He got a sweet deal he would not have done otherwise.

He is a general bull(shitter) and by saving B of A he gets to save other assets of/besides his own that would following the pandemonium of a B of A takeover by JPM.

He has sold out. You have to remember he has already pledged half his fortune to charity. You think he really gives a hoot-a-nanny if he really lost a 5 billion dollar insurance policy. Or someone threatened him in the tub. 80 year old men are easy to "get rid of naturally."

Especially considering he couldn't spend all his money before he died, even if he tried.

 

 

 

Mon, 08/29/2011 - 21:23 | 1613659 Thomas
Thomas's picture

He's just George Soros with truth issues.

Mon, 08/29/2011 - 17:57 | 1613194 Fancy Bear
Fancy Bear's picture

Is this site above copyright laws? I knew it was all-seeing and powerful, but damn.

Mon, 08/29/2011 - 18:22 | 1613270 Tyler Durden
Tyler Durden's picture

Google is your friend.

Mon, 08/29/2011 - 18:26 | 1613276 Freddie
Freddie's picture

LOL!  Yeah Google/NSA, Big Brother and Buffett are my "friend." 

"Would you like a toaster with your Bank of America passbook savings account Mr. Durden?"

;-)

Mon, 08/29/2011 - 18:51 | 1613325 kito
kito's picture

@tyler--not if youre facebook or microsoft ;)

Mon, 08/29/2011 - 20:55 | 1613589 Cursive
Cursive's picture

@kito

I see what you did there.

Mon, 08/29/2011 - 18:46 | 1613314 JW n FL
JW n FL's picture

Fancy Bear

Is this site above copyright laws? I knew it was all-seeing and powerful, but damn. ************************************************************ Did Tyler put your scumbag Wall Street firm out of business? are you part of one of those Chinese Frauds? are you and evil Goldman Sachs (JP Morgan Shield) people?
Mon, 08/29/2011 - 20:29 | 1613529 Fancy Bear
Fancy Bear's picture

HOW DID YOU KNOW?? Crazy bitchez.

Mon, 08/29/2011 - 22:50 | 1613840 Freddie
Freddie's picture

+1 LOL!

Sino Forest or some of ChiCom shit scam.  I hope the Muddy Waters bust some more scams soon.  It is the only flicker of hope that someone is trying to keep a few scam companies honest.

Mon, 08/29/2011 - 21:08 | 1613622 slyhill
slyhill's picture

Well! Some bankster-apologist sure got his silk panties in a bunch!

Mon, 08/29/2011 - 17:58 | 1613199 buzzsaw99
buzzsaw99's picture

I think that I shall never see

A bigger worm dirt magnet than Warren B.

Mon, 08/29/2011 - 17:59 | 1613207 divide_by_zero
divide_by_zero's picture

Not enough "information" gathered at Buffet's fundraiser I take it?

Mon, 08/29/2011 - 18:00 | 1613210 doomandbloom
doomandbloom's picture

Buffett can still quit...and i would fully support that decision...i mean look at Soros....

After that i will support Rupert Murdoch's decision to step down....

these 80 year olds are screwing us..

Mon, 08/29/2011 - 18:03 | 1613221 lolmao500
lolmao500's picture

They need to have their meds taken away.

Mon, 08/29/2011 - 18:10 | 1613242 IMA5U
IMA5U's picture

like Kapitain Kirk Kekorian getting long GM stock during the little convert arb crisis in 2005 that short squeezed the arbs, old doods will jump at the opportunity to squeeze the shorts.  to prove to the world they can still get it up.

Mon, 08/29/2011 - 18:01 | 1613214 The Deleuzian
The Deleuzian's picture

purple dented hula-hoop loves BAC

Mon, 08/29/2011 - 18:11 | 1613246 IMA5U
IMA5U's picture

purple headed warrior with hula-hoop piercings also luvs BAC

Mon, 08/29/2011 - 18:15 | 1613254 IMA5U
IMA5U's picture

How to be a Crony Capitalist.  Have Dad serve on the US Congress.

Buffett was born in 1930 in Omaha, Nebraska, the second of three children and only son of businessman & politician, Howard Buffett, and his wife Leila (née Stahl). Buffett began his education at Rose Hill Elementary School in Omaha. In 1942, his father was elected to the first of four terms in the United States Congress, and after moving with his family to Washington, D.C., Warren finished elementary school, attended Alice Deal Junior High School, and graduated from Woodrow Wilson High School in 1947, where his SR yearbook picture read: "likes math; a future stock broker."


Read more: http://www.businessinsider.com/blackboard/warren-buffett#ixzz1WSV1fRO0

Mon, 08/29/2011 - 19:23 | 1613388 Caviar Emptor
Caviar Emptor's picture

Learned at the knee of an insider. 

When I was a lad I served a term as office boy to an attorney's firm.....tra la

Mon, 08/29/2011 - 18:12 | 1613247 pcrs
pcrs's picture

Maybe he sees it as a form of taxes, that is what he really likes to pay. Instead of giving his money to Obama, who bails out BAC, he directly pays taxes to BAC.

Mon, 08/29/2011 - 18:32 | 1613285 Payable on Death
Payable on Death's picture

Well, duh. Warren wants to raise my taxes, the better to fund the bailout.

Mon, 08/29/2011 - 18:14 | 1613250 kito
kito's picture

cnbc has a poll on whether their readers support a return to the gold standard:

 

sit down for this one---

 

70 pct support the return to a gold standard!!! this is CNBC we are talking about, not ZH--holy shit!

 

http://www.cnbc.com/id/43898638

Mon, 08/29/2011 - 18:17 | 1613259 IMA5U
IMA5U's picture

That's because everyone, including my mother, is long gold.

Mon, 08/29/2011 - 19:00 | 1613342 WestVillageIdiot
WestVillageIdiot's picture

Is your mother hot? 

Mon, 08/29/2011 - 19:40 | 1613419 thatthingcanfly
thatthingcanfly's picture

Does your mom have big tits?

Mon, 08/29/2011 - 20:53 | 1613586 IMA5U
IMA5U's picture

lol   my mistake for bringing my mom into the conversation

 

 

Mon, 08/29/2011 - 20:57 | 1613595 Cursive
Cursive's picture

Gotta love,

Fight Club.

Mon, 08/29/2011 - 18:32 | 1613286 iDealMeat
iDealMeat's picture

Do you support a return to something resembling the gold standard?

 

is all you need to know..

 

FAIL.

Mon, 08/29/2011 - 18:15 | 1613253 TruthInSunshine
TruthInSunshine's picture

Buffett will decide to buy 750 million worth of Travelzoo while nearly drowning in a bowl full of Cheerios (after falling asleep at breakfast) tomorrow.

Mon, 08/29/2011 - 18:18 | 1613262 IMA5U
IMA5U's picture

i'd become more bullish if that happened

Mon, 08/29/2011 - 18:19 | 1613264 Missiondweller
Missiondweller's picture

My sense is the Buffett invested after getting an implied wink and nudge from either Obama or Bernanke that the BAC would be backstopped.

This whole Frank/Dodd BS that they will let banks fail is complete BS. They're just making their bailouts look like others investments. Buffett is in on it. BAC is likely already bust w/o this latest money. Its being kept hush hush by the Fed.

Mon, 08/29/2011 - 18:20 | 1613267 IMA5U
IMA5U's picture

$5bn is just a drop in the bucket as to how much BAC probably will be on the hook.

That being said, I highly doubt Buffet loses $ on his preferred and super cheap warrant investment.

Mon, 08/29/2011 - 19:29 | 1613399 Missiondweller
Missiondweller's picture

That's my point. His investment is a "sure thing" because he knows the Fed or the Obama admin won't let BAC fail.  TBTF lives.

Mon, 08/29/2011 - 21:38 | 1613682 dallasgringo
dallasgringo's picture

It would be foolish to think Obama and Buffett didnt have some form of "understanding" with this investment. Regardless of whether $5b is chump change to him or not, he wouldn't make it rain on BAC without knowing he'd at a minimum get his principal back. Thus he takes a senior preferred position with a common "kicker" all while knowing the gubment will wrap BAC and save everyone but maybe the commons and who knows...maybe tossing $5b at BAC not only is a slam dunk insider deal but also goes a long way to saving the more immediate counterparty risk that Berkshire Insurance Co. could have if the BAC ship were to start listing.  

Mon, 08/29/2011 - 18:34 | 1613292 gmrpeabody
gmrpeabody's picture

Well, I don't know where you get your news, but..., BAC has already made it clear that they don't NEED anyones money or help.

Mon, 08/29/2011 - 18:41 | 1613307 fiftybagger
fiftybagger's picture

16 And he spake a parable unto them, saying, The ground of a certain rich man brought forth plentifully: 17 And he thought within himself, saying, What shall I do, because I have no room where to bestow my fruits? 18 And he said, This will I do: I will pull down my barns, and build greater; and there will I bestow all my fruits and my goods. 19 And I will say to my soul, Soul, thou hast much goods laid up for many years; take thine ease, eat, drink, and be merry. 20 But God said unto him, Thou fool, this night thy soul shall be required of thee: then whose shall those things be, which thou hast provided? 21 So is he that layeth up treasure for himself, and is not rich toward God.

 

Luke 12
King James Version

Mon, 08/29/2011 - 18:50 | 1613322 JW n FL
JW n FL's picture

I Like it..

but it is just a wordy version of  "If a man were to gain the whole World but lose his soul in the process".

the more people you reach the better you are doing by God..

Given the fact that most are ignorant.. K.I.S.S. should be your motto!

Just becuase someone goes out and speaks the word.. is not the same as someone who goes out and communicates the idea of the Word to others. IMHO, I am not the Pope so I can make mistakes.

Mon, 08/29/2011 - 18:55 | 1613331 btechtrader
Mon, 08/29/2011 - 18:58 | 1613338 IQ 145
IQ 145's picture

I prefer "The life of Brian", by Monty Python myself; but whatever you find amusing.

Mon, 08/29/2011 - 19:13 | 1613356 disabledvet
disabledvet's picture

Buffet is the master. The fact that no less than the President calls him and says he calls him says it all. I think he's got them and you all and maybe even me figured out az well. Love it! The fact is it was insurance stocks that soared today--his profession. The real question is why isn't Jamie Dimon in europe right now "conquering the planet." the fact that Qatar beat him to the punch on Greece says to me he's been spending too much time focusing on DC who have just won the USA another war thank you very much. With the beautiful Ms Lagarde simply stating all the banks in Europe are broke and it makes ya wonder--hey there tough guy how 'bout a little ACTION.

Mon, 08/29/2011 - 19:18 | 1613370 razorthin
razorthin's picture

assmaster fraud

Mon, 08/29/2011 - 19:22 | 1613383 razorthin
razorthin's picture

he had the power to stop the housing fraud and avert the destruction of millions of middle class lives.

burn!

Mon, 08/29/2011 - 19:57 | 1613456 disabledvet
disabledvet's picture

Greenspan had that power not Buffet. Greenspan according to the media "created a bubble"--which if that's the case he also burst it. Buffet merely made a fortune off the calamity--on Goldman Sachs no less. Anyone who squids The Squid is all right in my book.

Mon, 08/29/2011 - 19:16 | 1613366 razorthin
razorthin's picture

Beelzebub

Mon, 08/29/2011 - 19:18 | 1613369 bankruptcylawyer
bankruptcylawyer's picture

buffet is a godamn jew so he is part of the zionist conspiracy to destroy the world. no good. 

Mon, 08/29/2011 - 19:18 | 1613371 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

"we have no interest in purchasing shares of a poorly-managed bank at a "cheap" price. Instead, our only interest is in buying into well-managed banks at fair prices."

And you're buying BofA because...? Sheesh Warren, just looking at their balance sheet:

http://finance.yahoo.com/q/bs?s=BAC+Balance+Sheet&annual

Total Current Assets (in thousands)   -   -   Long Term Investments 1,359,844,000   1,325,639,000   1,474,758,000   Property Plant and Equipment 14,306,000   15,500,000   13,161,000   Goodwill 73,861,000   86,314,000   81,934,000   Intangible Assets 9,923,000   12,026,000   8,535,000   Accumulated Amortization -   -   -   Other Assets 182,124,000   191,077,000   114,650,000   Deferred Long Term Asset Charges -   -   -   Total Assets 2,264,909,000   2,230,232,000   1,817,943,000 

Please note that their Goodwill is over 5x their plant and equipment. And over 13% of their total assets are "other assets" (no doubt Skittle-shitting unicorns living in Vegas condos).

Mon, 08/29/2011 - 19:30 | 1613400 buzzsaw99
buzzsaw99's picture

he thoroughly reviewed their books while sitting on the crapper and deemed them tbtf and thus taxpayer backed.

Mon, 08/29/2011 - 19:36 | 1613414 thatthingcanfly
thatthingcanfly's picture

Hence the irony central to Tyler's post.

Mon, 08/29/2011 - 19:28 | 1613393 MoneyWise
MoneyWise's picture

Buffet and Trump both long BAC, keep posting BAC collapse

crackhead stories, more you post, higher it goes..

*LOL*

Mon, 08/29/2011 - 19:52 | 1613446 doggings
Mon, 08/29/2011 - 21:12 | 1613635 Bring the Gold
Bring the Gold's picture

Wait Trump is long BAC? That alone would make have second thoughts if I was Buffet.

Mon, 09/05/2011 - 23:56 | 1613394 gangland
gangland's picture

OT

 

 

Mon, 08/29/2011 - 19:29 | 1613396 Caviar Emptor
Caviar Emptor's picture

Life is far from sunny When the laugh is over And the jokes on you

Mon, 08/29/2011 - 19:35 | 1613404 mynhair
mynhair's picture

Have to do a mea culpa.

Been discussing the candidates for, oh, 12 beers now, and have decided I will support Rue Paul.

Believe he won't pull Executive Orders out his ass if Congress goes a way he thinks is wrong.  Rather he will TV us all on the issue with meaty discussions.

Mon, 08/29/2011 - 19:44 | 1613424 nmewn
nmewn's picture

You're a sick, sick man. Please continue ;-)

Mon, 08/29/2011 - 19:59 | 1613461 Red Herring
Red Herring's picture

Rue Paul.  Liberty to express yourself.  In drag!

Mon, 08/29/2011 - 20:11 | 1613482 nmewn
nmewn's picture

Thank goodness for reporters actually doing their jobs and reporting on these beraking events.

Reporter explains tropical storm Irene "sea foam" to the plebes ;-)

http://www.myfoxny.com/dpp/news/fox-reporter-gives-update-covered-in-sea-foam-20110827

Mon, 08/29/2011 - 22:02 | 1613729 Money Squid
Money Squid's picture

Here is the video of the Sea Foam incident...unbelievable
http://www.youtube.com/watch?v=9qRJeIhW89s&feature=related

Mon, 08/29/2011 - 19:38 | 1613416 Money Squid
Money Squid's picture

Dear Warren, eat a dick. Whoops, did I type that out loud?

Mon, 08/29/2011 - 19:39 | 1613418 warchopper
warchopper's picture

Time to buy 1 share of Berkshire Class A so that I can watch Warren slip into senility first hand.

Mon, 08/29/2011 - 19:47 | 1613433 Irish66
Irish66's picture

Correct me if I'm wrong, Buffets deal doesn't close till Sept. 1

Mon, 08/29/2011 - 19:55 | 1613452 I am a Man I am...
I am a Man I am Forty's picture

warren doesn't even follow his own advice anymore

 

Mon, 08/29/2011 - 20:41 | 1613554 PC Load Letter
PC Load Letter's picture

Buffett stopped following his own advice 10 years ago when he got into the derivatives game. The same person who claimed they were "WMD's" apparently thought he was smarter than everyone else and decided to join the shit show. I knew then his buy and hold philosophy was a bunch of BS

Mon, 08/29/2011 - 19:56 | 1613455 ebworthen
ebworthen's picture

 

That old codger Buffet has Obama in his hip pocket.

Watch Obama push some program to bail out the banks AGAIN and label it as "Housing Recovery" or some bullshit moniker.

What a load of crap.

Once again the only people getting the shaft will be the responsible household.

 

Mon, 08/29/2011 - 20:05 | 1613469 HCP
HCP's picture

Thanks for the Buffet essays, finally some insight from people who matter on this website. Those who can't. Blog. ;)

Mon, 08/29/2011 - 21:52 | 1613685 GoinFawr
GoinFawr's picture

Well at least we all now know what you're doing here. If you'd been paying attention sooner you might not be such a bitter 'cannot'.

Mon, 08/29/2011 - 20:15 | 1613496 Downtoolong
Downtoolong's picture

our only interest is in buying into well-managed banks at fair prices.

And BAC was the best opportunity he could find? I guess Buffett has even more dirt on the  rest of them than you and I know.

(Buffett be dissin on you "C"). 

Mon, 08/29/2011 - 20:25 | 1613519 bania
bania's picture

Can't believe it wasn't said yet... Alzheimer's bitchez!

Mon, 08/29/2011 - 20:28 | 1613525 HCP
HCP's picture

lol, he's made more money than your entire bloodline will in the next millenium at the game you probably tell people your so good at. JEALOUS MUCH BITCHEZ?

Mon, 08/29/2011 - 21:35 | 1613678 GoinFawr
GoinFawr's picture

Let me guess: you don't care if the world is unjust, just so long as it is unjust in your favour.

Mon, 08/29/2011 - 20:53 | 1613562 HCP
HCP's picture

Making money = Bitchez

Losing money = Markets rigged, Everyone is iStupid, Its the government.

 

ITS THE NEW WORLD ORDER. MAAAAAAAAAAAAAAN!

 

Oh, and making money is bad because only shiny rocks are money. maaaaaaaaaaan!

Tue, 08/30/2011 - 02:43 | 1613735 GoinFawr
GoinFawr's picture

HCP:  this is not the ZH'er you're looking for; though he's probably still doing well enough since he's been keeping his savings in silver since 1962.

Mon, 08/29/2011 - 23:48 | 1613904 Cursive
Cursive's picture

@slewie the pr-rat

bad link

Mon, 08/29/2011 - 20:54 | 1613587 tomreagan
tomreagan's picture

 Ahh the American Dream....I think back upon the baby boomer squids, and how much damage they have done to commodities, philposophy, politics...and I cant' help but wonder. Is it possible that they think we are all the marks? That maybe, they justified their philosophy not becuase it was right, but rather lucky (depending on your side of the fence of course)? I look around the trading floor now and see the same old reasons given by the "Greatest Generation's offspring" to try and convince me that what they say is golden. Stocks return X, this has never happened because, blah blah blah, phd etc. etc, . I heard a guy on the train say "Can you believe what happened to Rob? His boy was a boy scout, grade a student, QB, and blam...leukemia. Who would have thought?" I stared and said...well, last I checked fortune didn't ask for a resume. Most of these moves, the desire for QE3 or to keep asset prices afloat, are not because they believe it, but because they need it..or else everything that happened between 1946 and 2008 was a mirage...And that may be too much weight for those who could never live up to their parents' generation who actually fought for what they believe...out of necessity

Mon, 08/29/2011 - 21:04 | 1613611 gookempucky
gookempucky's picture

In Classical Antiquity, an oracle was a person or agency considered to be a source of wise counsel or prophetic opinion, predictions or precognition of the future, inspired by the gods. As such it is a form of divination.

Buffet is certainly no oracle.......... BAC = Buffets American Cover-up. Cant we hear it now, during the highest bidder lunch carnival as the winner of the lunch with buffet all excited and all they hear come out of his mouth is KILL or BE KILLED . Of course he will say that it always good to have a quickie on the side.

Mon, 08/29/2011 - 21:31 | 1613667 GOSPLAN HERO
GOSPLAN HERO's picture

Warren Buffoon is a rich socialist hypocrite.

Mon, 08/29/2011 - 21:48 | 1613698 GoinFawr
GoinFawr's picture

Interesting. I get the 'rich hypocrite' part, but would you mind elaborating on the '-ist'?

Mon, 08/29/2011 - 22:12 | 1613761 slewie the pi-rat
slewie the pi-rat's picture

hey G_F!

socialize losses + privatize gains = fascist 

better?

Mon, 08/29/2011 - 22:40 | 1613823 GoinFawr
GoinFawr's picture

Sure, for you and me slewie, but maybe Gosplan wasn't just knee-jerking like a clockwork orange.

So 'knew', what do you know?

Mon, 08/29/2011 - 21:53 | 1613709 tomreagan
tomreagan's picture

haha too much fox news madlib confusion!

Mon, 08/29/2011 - 23:11 | 1613865 Sizzurp
Sizzurp's picture

Reminds me of when he pulled out 5 billion for preferred shares of Goldman at the height of the last financial panic.  Basically Goldman, and every other major bank was circling the drain ready to take the dive and Warren magically felt it was the perfect time to invest. We now all know the story of how Timmay at the NY Fed had bailed out AIG with no haircut at all for Goldman's CDS's. Goldman and JP Morgan had called Timmay's bluff and rejected his demand to put together a private consortium of banks to provide bailout lending. That would have meant Goldman would have to take a haircut on the CDS's. Brazenly they told little Timmay to pound sand, so Goldman got 100 cents on the dollar in their bad dirivitive bets with AIG. I gotta hand it to Warren, he gamed it just about perfectly. He made billions and made it seem like he was the good samaritan coming to the rescue.  We'll probably never know exactly who said what and when, but I get the feeling it takes a lot more than a hunch to lay down a 5 billion dollar bet on a bank that should, by all natural rights of a free market, be bankrupt.

Mon, 08/29/2011 - 23:30 | 1613886 lunaticfringe
lunaticfringe's picture

BAC calling Countrywide the worst investment they have ever made. Muhahahah. They even paid the courtroom expenses, in excess of 20 million, for that full blown piece of lying shit...Angelo Mozilo. Mozilo I think...is still on BAC's board, instead of a Leavenworth cell. Not bad for a guy who essentially bankrupted the US, lied about the scope of it, and is now taking BAC with him.

Mozilo you are a fucking piece of work. May your chains rest lightly on your shoulders and God help ya if I run into you.

Warren Buffett now becoming the Debacle of Omaha.

Tue, 08/30/2011 - 01:40 | 1614016 Jovil
Jovil's picture
Pyramid of Capital System – Where are we in it?

 

http://lonerangersilver.wordpress.com/2011/08/30/pyramid-of-capital-syst...

Tue, 08/30/2011 - 05:31 | 1614133 MGHJFHD
MGHJFHD's picture

Hi there I am wondering if I can use this article on one of my blogs if I link back to you? Thanks.

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Tue, 08/30/2011 - 07:18 | 1614174 csmith
csmith's picture

You forgot the epilogue:

 

"All of the above is null and void IF the Feds prove willing to bail me out. If that's the case, then back up the truck!!!"

Tue, 08/30/2011 - 08:24 | 1614258 srsmith98@hotma...
srsmith98@hotmail.com's picture

Tyler Durden of ZeroHedge looks at “Warren Buffett’s Philosophy on Investing in Banks.”

Mon, 09/05/2011 - 09:49 | 1634112 shacai
shacai's picture

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