Feel free to add your own. "...the treasury and fed have gone "all in." "In fact, we were paid $2.8 billion to hold our foat during 2008. Charlie and I find this enjoyable." "GEICO is now saving money for millions of Americans. Go to GEICO.com or call 1-800-847-7536" (Even Buffet enjoys shameless plugs) "Investors should be skeptical of history-based models. Constructed by a nerdy-sounding priesthood using esoteric terms such as beta, gamma, sigma and the like, these models tend to look impressive. Too often, though, investors forget to examine the assumptions behind the symbols. Our advice: Beware of geeks bearing formulas." "We never want to count on the kindness of strangers in order to meet tomorrowâs obligations." "When forced to choose, I will not trade even a nightâs sleep for the chance of extra profits." "Derivatives are dangerous." "Participants seeking to dodge troubles face the same problem as someone seeking to avoid venereal disease: Itâs not just whom you sleep with, but also whom they are sleeping with." "During 2008 I did some dumb things in investments."
Derivatives contracts, in contrast, often go unsettled for years, or even decades, with counterparties building up huge claims against each other. âPaperâ assets and liabilities â often hard to quantify â become important parts of financial statements though these items will not be validated for many years. Additionally, a frightening web of mutual dependence develops among huge financial institutions. Receivables and payables by the billions become concentrated in the hands of a few large dealers who are apt to be highly-leveraged in other ways as well. Participants seeking to dodge troubles face the same problem as someone seeking to avoid venereal disease: Itâs not just whom you sleep with, but also whom they are sleeping with. Sleeping around, to continue our metaphor, can actually be useful for large derivatives dealers because it assures them government aid if trouble hits. In other words, only companies having problems that can infect the entire neighborhood â I wonât mention names â are certain to become a concern of the state (an outcome, Iâm sad to say, that is proper). From this irritating reality comes The First Law of Corporate Survival for ambitious CEOs who pile on leverage and run large and unfathomable derivatives books: Modest incompetence simply wonât do; itâs mindboggling screw-ups that are required.
I'm amazed is how he completly avoided to talk about one of his biggest mistakes ever. The guy is still long BANKING STOCKS when the KBW index is plunging into all-time lows, he is on the red on WFC and USB after holding it for years(He bought WFC in the early 90's). He will be LONG gone by the time banks hit new highs. Heck *I* wont be alive by the time that happens
Spot on. IMO this is the main reason why WFC joined in by acquiring Wachovia. Is above a quote or your opinion?
"During 2008 I did some dumb things in investments." I think that covers holding banking stocks very well. PS Do you clowns really need to hear the obvious from Mr. B? He would be the first to tell you that if you're waiting for his annual report to get insight, you've long missed the boat.