Warren Buffet will go broke

[ralph00]

Quote from Cutten:


Buffett has experienced 1973-74 which was worse than this crisis.

WTF! Are you kidding? I'm not commenting on what Buffet is doing, but saying that 73-74 is worse than now is just ignorant.

Remember key differences ... there was a lot of room between Fed Funds and zero in the mid-70s, there is very little now. The government and the populace was not nearly as indebted then as they are now. The point being, that both then and now were brutal bear markets and recessions, but in the mid-70s, there were a lot of bullets left in the gun. Now, the Feds are all-in. What do they have left if things get worse from here?

 

[ElCubano]

im going with NY hood on this one.....the avg investor is tapped out....I have never in my life received so many calls on what is going on...people are tapping out..if he is wrong and the market drops another 20% suicides would sky rocket.....peace

 

[GermanTrader]

Quote from Cutten:

How can he go broke when he has no debt?

That's easy. Debt-free is fine unless your assets are worthless. Stock value at zero means broke. And yes, he does have some debt.

 

[jamus]

Quote from empee:

i thought it was his personal account and not BRK, i think his personal account is only 1% of his wealth.

Only 1%...he will lose it all!!! (mind you that is more than all ET'ers are worth)

 

[murray t turtle]

Quote from Cutten:

How can he go broke when he has no debt?

Buffett has experienced 1973-74 which was worse than this crisis. He studied under Graham who lived and invested through the 1930s.

====================
Mr Buffet's view of debt [weak link in a chain], is rather old fashioned, but i like it.

His paperwork with GS, probably did find favor with the Fed;
peradventure not the main motive.........................................

Local TN farm tractor dealer is buying some, but thats more material/commodity based than paperwork.

Frankly ,i enjoyed doing business with Mr Buffet 's investment, Wells Fargo Bank;
but as far a calling bottoms [plural-LOL] in a bear market,
well, i wouldnt be too quick in calling bottoms in a bear market.

Jury is still out on '73-'74 compared to this bear market;
drought is still severe in many places, not just USA..

Best of times & the worst of times.
Like they say,
love ''bears'' all........................
===========================

 

[hoodooman]

He can't go broke. He still has social security check every month.

 

[murray t turtle]

Quote from GermanTrader:

That's easy. Debt-free is fine unless your assets are worthless. Stock value at zero means broke.

===========================

Interesting perspective.

1929,1930's , DOW got close to zero, but the commies were disappointed,stocks eventually recovered...............................

G-trader, good points;
some of Mr Buffets stock/business investments[as you probably know],
include the commercial real estate. But i have seen more local delinquint tax auctions ,in TN.They didnt pay the local property tax, so the real estate was auctioned off on county courthouse steps.

News said recently, social security recievers got a raise;
dont know what Walnut Tree Capital did this year,
but local walnut trees had rain & a good crop.

 

[Free Thinker]

Quote from jamus:

Only 1%...he will lose it all!!! (mind you that is more than all ET'ers are worth)

i suspect he is already profitable if he bought yesterday morning. the question is will he keep it.

 

[Arnie]

There was an interview with Buffet on CNBC the other day and he said the vast majority of his personal wealth was in Treasuries. The guy has been arund the block a few times, so I wouldn't bet against him.

 

[eagle]

Be fearful when others are greedy, and be greedy when others are fearful.

Let's assume that Buffet considers US economy as a whole as a single stock. You can test the above theory by taking one single stock at your preference and watch it carefully then apply the above rule. I bet you will make some money and won't go broke.