GS was ridiculing Buffett last year

Discussion in 'Wall St. News' started by wilburbear, Nov 13, 2008.

  1. asap


    so how are these bozos at gs global alpha hf doing now? i am sure they took a big hit with the volkswagen deal the other week. most probably it's already in liquidation, after bleeding to death all year. what a bunch of arrogant incompetents.
  2. Mr. Omaha would not trade without a hedge, so I am not worried about him paying his utility bill. That said, I think the depression will show that he waited years to break even from his recent longs. Not my idea of liquidity.
  3. oraclewizard77

    oraclewizard77 Moderator

    Anyone who followed Buffet into that trade, lost 50% of their money.

    But did Buffet actually make a bad trade. Remember, GS is giving Buffet a 10% return on his investment.

    Assuming in 10 years time, GS goes back up to the price that he originally invested his money, Buffet will still make a 100% or 10% per year.

    Now, lets assume GS stays around $ 62/sh for the next 10 years, then buffet still made a 50% and did not LOSE any money for himself or his shareholders.

    Now Buffet could still dollar cost down and buy another chunk of GS if he still believes in the company. I don't remember if Buffet ever dollar costs down, or just invests once, and holds forever. I did notice many of the stocks that he has held forever do pay dividends even if he does not.

    More than 1/2 the stocks I invest in, pay dividends. My worst performing stock is one that does not pay a dividend, but should still go up if they win a court verdict.