I had lunch last week with Rolfe Winkler, who is an up and comer in the blog world, a thinking man’s Felix Salmon.
He is similarly annoyed with St. Warren — but rather than engage in my sophmoric venom spew, he went to the spreadsheet to discover that Buffet owns major stakes in 8 companies that have received more than $100 billion in government bailouts.
Capitalist? Hardly. Sounds more like just another crony to me.
Rolfe also posts this fabulous chart:
via Reuters
While I understand the point you are making, I think the totals on the chart are pretty misleading. Half of the total amount comes from BAC and STI, though the amounts of Buffet’s investments in both are completely immaterial, both to BRK and to the institutions themselves. To call them “major stakes” is rather misleading in those two cases.
This guy is one of the biggest freeloaders in the history of business. When will people finally wake up?
Yep, Rolfe is more anti-establishment than your typical blogger and unlike Felix, doesn’t just take a contrarian stance just for the sake of it.
Hope he does more pieces like this.
Is it any wonder that the pumpers on CNBC adore this man?
[BREAKING NEWS]
Warren Buffet had two bowel movements this morning. Sources say both came out normally which should be a relief to anxious investors.
oh . . .then . . . buffet’s not an investing god?
sigh- all my illusions are shattered
Barry: 2 things:
1. Are you on twitter, and if not, when will you be?
2. Thoughts on today’s healthcare vote?
Going after a big shot like WB is fun, but you are doing it for the wrong reasons (personal).
WB is a master allocator of capital, and right now, the best risk/reward is to invest in companies the US government will not let fail. It’s that simple.
Jeff http://www.cerebellumblues.com
After hearing what BoA and Wells Fargo has been doing to hardworking regular people who have been hurt by the crisis created by our financial industry, I will never again do any business with those scumbags nor own any of their stocks. But that is just me and my ethics. Still waiting for a law restricting pay in any company that has any loans or loan guarantees from government.
So, are we too assume you have no long positions in any of these companies then?
~~~
BR: You are to assume nothing.
Instead, you are to do research in order to make informed decisions based upon fact.
My policy on equity positions are cleared explained in the page that is marked DISCLOSURES on the front of TBP:
3. Market Positions:
If I am discussing a specific company and/or its stock, and I have a personal "” or a firm/client position in that stock "” I will disclose that position at the end of the post, near the "sources" section. I err on the side of "more disclosure is better."
I may or may not make such a disclosure if I am only discussing a given sector. (i.e., in a discussion of Oil/Energy, I may or may not disclose positions my Conoco Phillips / BP).
I try not to discuss small cap positions often, as they are too easily pushed around. I especially don't like to discuss small cap shorts. Since I prefer not to disclose short positions, but do want to maintain a full disclosure policy, I simply avoid posting on them. Readers should not assume that I have any position, long or short, merely because a stock is mentioned.
–http://www.ritholtz.com/blog/disclosures/
I’ve been saying the same thing ever since last fall. How nobody in Congress has demanded to know what was discussed between Paulson and Buffet is a joke. They are on the record stating they were having phone conversations during last years’ implosion. Buffet did that “endorsement” deal with Goldman preferred shares and soon after AMEX is made a bank holding company so they can get TARP funds, give me a break?!?!
Goldman and Berkshire are the two of the primary stewards of the wealth of the wealthiest people in this country. The wealthy and their stewards own the government in this country. The middle class better wake up before there’s no longer a middle class left.
[...] According to Rolf Winkler of Reuters: [...]
No different than PIMCO who ran under the Government umbrella, as close to the handle as possible. I believe that was the analogy they used often to describe their strategy.
jeffshattuck-
Nonsense. Moody’s was COMPLICIT in FRAUDULENTLY selling CDOs, MBS etc. with AAA ratings.
At least Warren’s telling you to tax him. The others? Though they stand on the shoulders of giants/scientists/taxpayers who built the establishments where they work, who invented the technology they use, and who provide the sea of liquidity upon which they float, they think they owe it all to themselves.
Wunsacon-
For Buffet taxes aren’t really taxes, it is more of an insurance premium now, and I would love to see his return that his insurance policy, er taxes, paid.
BR, you wrote that Rolfe is a “thinking man’s Felix Salmon”. I actually think Felix is pretty decent and surely you didn’t mean to knock Salmon down the river a bit by insisting his points aren’t well thought out?
As a fellow Omahan (native, at least), I’m reluctant to cast aspersions on a guy who’s managed to do pretty well for himself. As the same time, it’s impossible ignore the fact that in America, the richer you are the more breaks you get.
Ok, som other points to argue in Buffett’s favor…by getting in bed with the feds and getting their free money via bailout, isn’t he doing the best thing possible for shareholders to ensure the value of the stock?
If you want to take the patriarchal viewpoint, doesn’t it look like Berkshire has cut the right deals to ensure themselves of being a favorable company for years to come long after Warren is gone?
Finally, can’t one argue that Buffett did not pursue federal bailout money for another industry he is heavily invested in (newspapers) despite many in that industry clamoring for it?
These are just points of view that I am putting out there for debate, not necessarily my point of view. I own shares in Berkshire Hathaway and have for a long time mostly on the strength of the management team.
BR, re Twitter.
Great tool, but HUGE time suck. You’ve already got great traffic and more invitations/commitments than you can handle. I’d leave it alone (though I use it to complement the blog I write). Juts my .02…
The tax credits from Fannie were/are over the top. However, this post is a little silly as a few of these holdings have been in Berky’s portfolio for years. I think you are stretching when you say he is a cronyist.
You make it sound like Omaha has a direct line to Hank Paulson and Buffett and Rahm hang out together in Turkish bath houses. Do you see Geico or GenRe getting TARP money (Actually, I am curious, is Geico getting any bailout dollars?), or NetJets (the problem child).
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