Warren Buffett conflict of interest

Discussion in 'Economics' started by wilburbear, Nov 7, 2008.

  1. From today's Bloomberg:

    "Obama and Vice President-elect Joe Biden will meet today with billionaire investor Warren Buffett, and other members of his team of economic advisers."

    Was it Buffett's idea to actually give lower income people tax rebates? Money that would ultimately be spent on Sees Candies, Cokes, Geico Insurance, etc.? Buffett is well-positioned in many mass market businesses. Secretary Paulson was required to sell much of his personal financial holdings to avoid conflicts of interest. Why is Buffett categorized as a dispassionate observer of the American public's finances?
     
  2. 1) Lower income people don't buy See's Candy. They buy Hershey's.
    2) Lower income people don't buy GEICO insurance because they do not have internet access. :D
     
  3. lassic

    lassic

    strange, he pops up over the past months claiming he's allegedly buying

    wonder how much bad assets Berkshire is holding
     
  4. eagle

    eagle

    The expectation for Obama to resolve the financial crisis is so high. He seems to be harsh on resolving the issue. In this vulnerable time, he could get hooked by Buffet if Buffet has a strong self-interest on his solution proposal.
     
  5. Yes, and this too. Now he's "all in" and long the market. He won't be one of those who suggest we move straight through the pain with no bailouts - the quicker the better.

    Buffett bet on the bailout saying, "God help us if we don't get it." Now he's got the next President's ear on a fiscal stimulus where the money will end up right back in Buffett's pocket because his portfolio is rich in mass-market companies (Coke, Geico, etc.).
     
  6. and now, 2 minutes buffet

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  7. Buffett does have self interest in Obama's economic proposals. The stimulus that Buffett will advise on, will go to lower income people. That money will end up right back in Buffett's pocket via his mass-market businesses (Coke, etc.).

    That's why they make the Treasury Secretary, for example, sell some of his personal holdings. Buffett knows how to game the system by having a voice, but acting only as an "adviser".

    Go long BRKB. Buffett no longer has to wait for the money to find its way into his pocket. He can put it there through his government connections.
     
  8. Buffett still advises the President - on how our money can end up in his pocket.
     
  9. #10     Nov 3, 2009