Could buffet blow up?

Buffett hasn't lost anything on GS. He is getting 10% guaranteed on a 5B investment with warrants that last 5 years to buy GS at 115. Warrants are just like options. The buyer has the right but not the obligation to buy the stock at 115 anytime within that 5 year period, assuming they are American warrants. If GS is above 115 anytime during this 5 year period and Buffett wants to be a long term holder of the stock he will buy the stock. Otherwise, the only risk he faces from GS is if they default on their debt.

Quote from stock_trad3r:

no I'm not bearish. :D

it's funny that buffet is hailed as the oracle and now he's losing his shirt. There is even a book out called The Snowball. The irony that the tome chronicling his career was published as brk.a is falling off a cliff.

But what's wrong with brk.a? Anyone have any scoop on this?

http://www.etfguide.com/research/96/8/Down-$16-Billion---Has-Warren-Buffett-Lost-His-Touch?/

A 40% loss on a $5 billion investment in GS would not explain this huge selling

are there toxic assets? options?
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Quote from stock_trad3r:

brk.a is falling off a cliff when the rest of the market is down a little

Is it really possible that after decades of beating the market he finally succumbed to the rule of averages?

what did buffet buy? Geico can't save the day.

he should buy apple, google and rimm. lose the GE and GS.
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Don't worry about Buffett

Worry about yourself
 
http://www.bloomberg.com/apps/news?pid=20601087&sid=ayIRzsMlT.6k&refer=home

"Berkshire has posted four straight profit declines, the worst streak in at least 13 years, on falling returns at insurance businesses and investment losses. Buffett, ranked by Forbes magazine as the richest American, has committed at least $28 billion this year to acquire companies, finance buyouts and purchase securities as prices fell and competitors were hobbled by limited access to credit. "

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the company seems like a convoluted mess
 
Man, with the 10 Billion he spent on GE and GS he could buy half the retail sector and their real estate by next year. Forget snowball, he got snowed. Plus I believe those investments were preferred stock; junior to debt in liquidation.
 
While everybody else are losing money or facing bankruptcy and you're just reducing your profit; it's not bad at all.

Quote from stock_trad3r:

"Berkshire has posted four straight profit declines, the worst streak in at least 13 years"
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Quote from Epiphany:

Don't worry about Buffett

Worry about yourself
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WERD!!!


drowning.gif
 
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