Warren Buffett's Berkshire Credit Risk Soars to One Level Above Junk

Quote from Daal:

``That's just so stupid,'' said Mohnish Pabrai, head of Pabrai Investment Funds and a Berkshire shareholder. The swap buyers are projecting ``present circumstances into infinity'' and concluding Buffett's bet will cost the company $40 billion, Pabrai said. ``

Apparently to pabrai the chance of a japanese scenario in the US in the middle of the worst credit bubble burst in history is 0

http://www.bloomberg.com/apps/news?pid=20601087&sid=ax3BmoyP2nVU&refer=home

"It will never happen,'' he said."

If it does it couldn't happen to a more deserving guy. Eat shit Buffet.
 
Quote from makloda:

You mean like how it was a bad decision to play superman in 1974, 1987, 1990 and 2002? LOL

there is no doubt buffett have the odds in his favor. but at this point if the US goes japanese it isn't even a black swan any longer.
taleb says all it takes is one bad year to destroy decades of a record and he likes soros(the trader) instead of buffett simply because soros made his money long and short in different markets all over the world, while buffett is simply a boosted sp500
 
He should have sold instead of being the bag holder.
He caught the falling knife trying to catch the bottom. He guessed wrong.

Buffet is deep in losses.
He'll be dead before his stock portfolio gets back to break even.
 
Quote from 1flyfisher:He caught the falling knife trying to catch the bottom. He guessed wrong.
He's not a trader nor a market timer. He buys public and private companies when they are 'cheap enough'. The criteria is not 'buy when they won't get any cheaper from here'. The criteria is 'buy when they're cheap enough (for Buffet)'.

He doesn't care if he can't perfectly pick a bottom. Doesn't matter for his investment style.
 
We're not Japan by any stretch. And if Taleb is such a genius, where are his billions?
Quote from Daal:

there is no doubt buffett have the odds in his favor. but at this point if the US goes japanese it isn't even a black swan any longer.
taleb says all it takes is one bad year to destroy decades of a record and he likes soros(the trader) instead of buffett simply because soros made his money long and short in different markets all over the world, while buffett is simply a boosted sp500
 
Believe it or not, even if the US goes the Japan way to hell (20 years of zero net growth), there will still be tons of public and private companies that generate hefty free cash flows, and those are the ones Buffet is after.

He could care less if he can't time a bottom.
 
He's got a losing strategy in this market, buy and hold is dead and he has been losing billions. He thought stocks were cheap at Dow 14,000 and held all the way down.
Buy and hold is getting killed.
Someone has to be the bag holder. It might as well be him.

Quote from makloda:

He's not a trader nor a market timer. He buys public and private companies when they are 'cheap enough'. The criteria is not 'buy when they won't get any cheaper from here'. The criteria is 'buy when they're cheap enough (for Buffet)'.

He doesn't care if he can't perfectly pick a bottom. Doesn't matter for his investment style.
 
Not true, read his 13Fs and educate yourself.
Quote from 1flyfisher:

He's got a losing strategy in this market, buy and hold is dead and he has been losing billions. He thought stocks were cheap at Dow 14,000 and held all the way down.
 
Buffy is LOSING BILLIONS.

He held stocks and was buying at DOW 14,000 because he doesn't know when to SELL and take profits.

His investment strategy is out dated and doesn't work in BEAR MARKETS.

IF BUFFY was smart he should have sold Home Builders, Financial s, and the market.

Buffy is getting KILLED.

http://www.cnbc.com/id/27810126
 
"Universa Investments, the $2 billion hedge fund founded by New York University risk engineering professor Nassim Nicholas Taleb, did something that seems impossible for funds that keep 90% of their assets in cash: post triple-digit returns. The firm's Black Swan Protection Protocol funds made between 65% and 115% last month, according to The Wall Street Journal."

http://online.wsj.com/article/SB122567265138591705.html
 
Back
Top