Warren Buffett

Flash Boys' Michael Lewis Warns "The Problem's Not Just HFT, The Problem Is The Entire System"

As HFT shops begin to turn on each other, it seems appropriate to reflect on the impact that Michael Lewis' Flash Boys book had on exposing the ugly truth that many have been discussing for years in US (and international) equity (and non-equity) markets. As Lewis concludes, after explaining the attacks he has suffered from the HFT industry, "If I didn't do more to distinguish 'good' H.F.T. from 'bad' H.F.T., it was because I saw, early on, that there was no practical way for me or anyone else... to do it. ...  The big banks and the exchanges [have] been paid to compromise investors’ interests while pretending to guard those interests. I was surprised more people weren’t angry with them."

Warren Buffett Wants To Give You A Car Loan

Berkshire Hathaway is getting into the car-retailing business with the purchase of the country's biggest privately-held dealership chain. With auto sales set to stall thanks to subprime jitters, is the Oracle stepping into the wrong business at just the wrong time?

Warren Buffett - Lucky Coin Flipper?

Last week, Buffett moved the goalposts.  If money were what really matters, Warren Buffett would have no peer. He has had unparalleled success in this world; surely he has a first-class ticket to the next. And if his good fortune were of his own making, what would he have to fear? But what if fortune, which smiled on him so broadly for so many years, begins to frown?

Buffett On Europe: Germany Must Stop Greek Dog Peeing On Its Carpet

Not to be outdone by his partner Charlie Munger (who offended many with his comments that "gold is a great thing to sew onto your garments if you're a Jewish family in Vienna in 1939,"), Berkshire Hathaway's Warren Buffett decides to take on Europe (and The Big Lebowski), and particularly the Greeks in today's 'perhaps it's time to just STFU' moment. Responding to questions about Europe's future, Buffett compares Greece to a "dog peeing on the carpet" of Europe, suggesting Germany stop "rewarding behavior you want to get rid of."

Frontrunning: March 2

  • Hilsenrath: Fed Ushering in New Era of Uncertainty on Rates (WSJ)
  • Is Supreme Court's chief justice ready to take down ObamaCare? (The Hill)
  • Netanyahu arrives in U.S., signs of easing of tensions over Iran speech (Reuters)
  • Nemtsov Murder Fuels Suspicion, Fails to Spur Russia Selloff (BBG)
  • ECB uncomfortable with leading role in Greek funding drama (Reuters)
  • Video shows Los Angeles police shooting homeless man dead (Reuters)
  • Iraq Military Begins Campaign to Reclaim Tikrit (WSJ)
  • How Billionaires in London Use Secret Luxury Homes to Hide Assets (BBG)

Warren Buffett Releases Monster 43-Page Half-Century Letter To Berkshire Faithful

The day the Buffet "value-investing" fanatics have been looking forward to all year, almost as much as the annual pilgrimage to Omaha, has finally arrived - hours ago Warren Buffett released his historic, 50th annual letter to shareholders, which is extra special because as the Oracle notes in the foreword, "Fifty years ago, today’s management took charge at Berkshire. For this Golden Anniversary, Warren Buffett and Charlie Munger each wrote his views of what has happened at Berkshire during the past 50 years and what each expects during the next 50."

Don't Show This To Warren Buffett (Gold vs. The Financial System)

Warren Buffett once famously chided that all the gold in the world would form a cube of 67 feet (20 meters) on each side. In doing so, he was attempting to argue that there was no point in owning gold since all the gold in the world would be an unproductive, useless hunk of metal. What’s ironic (and completely lost on the venerable Mr. Buffett) is that you could make the same argument about the paper-based financial system.

If "Everything Is Awesome", Why The Alarms Over A Slight Rate Hike?

The fact that there is a debate about a quarter-point rate hike tells us that extraordinarily low interest rates have mostly failed to deliver a robust recovery. That people opposed to even the tiniest increase in rates are resorting to hyperbole tells us that they too know this. The thinking seems to be that six years into near-zero policy, the only reason it hasn’t worked is because it hasn’t been tried long enough. Meanwhile, the dangerous side effects of year after year of artificially low rates continue to grow.

Fourth Turning: The Shadow Of Crisis Has Not Passed - Part 4

The world has begun to devolve into two distinct factions. The imperialist actions of the American Empire in the Middle East and Ukraine have pushed Russia, China, India, Brazil, and Iran closer together regarding trade deals; transacting commerce without using the USD; oil and gas pipelines; and military cooperation. Totalitarian regimes are known for using foreign threats to distract the populace from domestic suffering. As a matter of fact, all regimes use this tactic. When the global economy rips apart at the seams due to the debt saturation, world leaders will attempt to blame other countries for their dire circumstances. Foreign enemies are good for business. Ask our Nobel Peace Prize winning President. War is inevitable.

Frontrunning: February 9

  • Greek Risk Draws Global Concern on Lehman Echo Warnings (BBG)
  • Merkel to urge caution in U.S. as pressure builds to arm Ukraine forces (Reuters)
  • West Races to Defuse Ukraine Crisis (WSJ)
  • German-French Push Yields Ukraine Summit Plan With Putin (BBG)
  • Swiss Leaks lifts the veil on a secretive banking system (ICIJ)
  • Italy Lenders Seen Cleansing Books Amid Bad-Bank Plans (BBG)
  • G-20 Finance Chiefs Face Tough Test in Istanbul (WSJ)
  • Demand for OPEC Crude Will Rise This Year, Says Group (WSJ)... or rather prays
  • U.S. Banks Say Soaring Dollar Puts Them at Disadvantage (WSJ)

The Fed Is Now Frontrunning Value Investors

The Fed has been supporting the market since the late 1980s. But there is an important difference between the actions of the Fed under Yellen versus Greenspan and Bernanke. In 2008, the Fed allowed Bear Stearns and Lehman Brothers to fail. Given the massive wipeout that followed, this decision is now viewed as a dangerous mistake. Having learned their lesson, the Fed is now rushing in to support the market in response to even routine 20% drops. In this way, the Fed is acting like a value investor who demands a small margin of safety before investing.... Since 2010, however, the Fed has changed tactics. The Fed is now reacting far more quickly. Small market selloffs are followed by immediate responses. By quickly riding to the rescue, the Fed is effectively front-running value investors.

Meet The Extreme Super Rich: A List Of The 80 People Who Own As Much As The World’s Poorest 3.6 Billion

"Eighty people hold the same amount of wealth as the world’s 3.6 billion poorest people, according to an analysis just released from Oxfam. The report from the global anti-poverty organization finds that since 2009, the wealth of those 80 richest has doubled in nominal terms — while the wealth of the poorest 50 percent of the world’s population has fallen." There you have it. The reason the wealth of the richest has doubled since 2009, is because “it’s not a recession, it’s a robbery.” Central bank and government policy has done this, it is no accident.

Even Warren Buffett Must Be Getting Concerned At This Market

Adjusting Warren Buffett's favorite indicator for 'the giant con that America is still enjoying growing economic prosperity - predicated on debt being the bridge between rising GDP and a declining economy' suggests today’s true market valuation is more than twice the previous all time high in 2000.