Buffett “We’re certain that the economy will be in shambles throughout 2009

Sat, Feb 28 2009
Warren Buffett Speaks To His Shareholders Today
By: Braunie

The Oracle Warren Buffett told his shareholders Saturday that 2008 was the company’s worst year on record, as the per share value of both the Class A and Class B stock fell 9.6%. In his annual letter, Buffett said neither he nor Charlie Munger, his partner in running Berkshire, can predict winning and losing years in advance, and that no one else can. “We’re certain, for example, that the economy will be in shambles throughout 2009 - and, for that matter, probably well beyond - but that conclusion does not tell us whether the stock market will rise or fall.”

The Old Oracle Buffett has had the worst 5 months in his career. His balance sheet is filled with bull market positions in this bear market. He hasn’t hedged his $38 billion of short puts. Warren is watching his fully invested position go down the drain. If stocks go to the p/e levels of 7-9x that we saw in 74 he will be wiped out. I was recently reading an article where the author (a respected trader) said that he suspects Berkshire could be going to ZERO within the next 12 months. Seems very far fetched but who would have thought a year ago Dow 6000’s?

Mr. Buffett’s October investments were complete show to help build confidence in the market. His infusions into Wells Fargo and Goldman Sachs were at least as dumb as the GE debacle. The act was stupid and egotistical of Buffett to think he could control market psychology. Buffett failed to recognize the situation for what it was -the end of an economic era. Like Greenspan, could this Guru of investment soon be a discredited?

It’s very sad to think Warren Buffett will witness the destruction of the company he built so many years ago. An entire life premise completely washed away.

This is a whole new world of investment folks. Nimble, rapid traders, not buy long for 20 years.

Buffett said: “Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel.These once-unthinkable dosages will almost certainly bring on unwelcome aftereffects.” “We’re certain, for example, that the economy will be in shambles throughout 2009 - and, for that matter, probably well beyond - but that conclusion does not tell us whether the stock market will rise or fall.”

http://www.themarketguardian.com/2009/02/warren-buffet-speaks-to-his-shareholders-today/

 

What a complete dumbass commentary. Braunie clearly must be new to both trading and investing.

"Warren is watching his fully invested position go down the drain. If stocks go to the p/e levels of 7-9x that we saw in 74 he will be wiped out." Wiped out? Did this idiot read the report at all?

Reminds me of the 1999 articles on how Buffet is too old for this market and the next 20 years were to be ruled by tech and telco.

 

There is a good argument to be made that no investor understood the 20 th century better than Warren Buffett.

But it is a new century and a new millenium.

Buffett revealed himself back in September and October.

He believes that FDR single handedly was responsible for the recovery from our First Great Depression.

He did not say that with words, but his faith in Gubmint and the embarrassing way that he shilled for and begged for the bailout said as much.

I see NO reason to have confidence in Gubmint or any our leaders, political or business, that Buffett seems to have.

Shorting Gubmint incompetence has been a more profitable strategy that investing in it.

I do not see that turning around any time soon.

 

wasnt he certain that his bank buys were wise?

didnt we have a '2 minutes buffett' about that a few months ago?