Just look at what Warren Buffett has decided not to invest in

The Times ^ | 12/28/07 | Patrick Hosking

[CutePuppy]

Interesting observation about investment into inelastic demand goods. I made a somewhat similar observation some time ago that he really invests in inflation, i.e. industries (insurance etc.) or products (See's, Coca-Cola etc.) that either benefit from or can withstand inflation much better than non-brand name products.

That also explains his reluctance to invest in high technology, an internally and externally essentially deflationary industry, aside from his explanation that he "doesn't understand it".

[Lancey Howard]

Thank you for your kind reply.

Yes, it’s funny how some billionaires (Howard Hughes, Richard Branson) go off on adventures and try to positively effect the world around them while others, like Buffett, are bores who seem to do nothing but see how much wealth they can stockpile for themselves.

[reg45]

and moron

[CutePuppy]

For people like Howard Hughes money is a just reward for lifetime of inventions and trying to improve things around them, for society’s sake or just because they can.

For Warren Buffett, hypocrisy and callousness is his just reward for thinking of and making nothing but money.

[tarheelswamprat]

Among living titans of industry, only George Soros springs to mind as a possible rival.

With respect to Buffet and Soros, there is an historical template being replicated. They are Twenty-First Century counterparts to Cecil Rhodes and J.P. Morgan. Neither of them really owns their wealth, they merely manage it. Unfortunately, there seem to be few left around here who will understand the reference... /grin

[bruinbirdman]

" can withstand inflation much better than non-brand name products."

Good point. My dad always said get a job in an industry that deals with something everyone needs. He is an engineer; was in natural gas.

I was in grocery distribution and warehousing.

Along those lines I always thought of toilet paper.

Commodities are a different category. While I was in food distribution, the company had an absolute rule that the buyers could not speculate on commodities, not even as a hedge. We bought finished product not raw material.

I don't see Berkshire Hathaway in speculative assets. Strictly long term investments. Hmm. It does own insurance companies.

yitbos

[montag813]

Please: NO profanity, NO personal attacks, NO racism or violence in posts.

[Justa]

He’s investing against inflation. Producers will raise cost of goods to cover inflation whereas banks will not. The banks’ 13% and 20% rates offered to Dubai and Singapore offer insight into the anticipated real inflation rate over the life of those loans.

[Sal]

I understand the reference and raise you one. Go back and read the 4 categories of investments in #6 and see if that doesn’t remind you of something about to be built, something very wide, incredibly long and lined with motels, restaurants and gas stations not to mention rail lines.

[Gen-X-Dad]

Top that off with that he doesn’t believe in helping his family, but willing hands over billions of dollars of Berkshire stock to the nonprofit Gates foundation

That's just libelous. Where is there one shred of evidence that any member of Buffet's family wants for anything?

Well, this is just my personal observation from reading his autobiography and watching a show on Oprah with the wife, where his granddaughter stated he does not help his children or grandchildren. All he would do is pay for their college education and then they were on their own. The point I am making is he should not be held up as a folk hero. Yes, the man is a brilliant investor but it seems to me he has let his family down. With his wealth, there really is no reason for doing that. Meanwhile, he is a blatant hypocrite that wants to tax people more while sheltering his wealth in a nonprofit charity. If he was the least bit sincere he should let Uncle Sam get their cut or basically quit telling everyone else we need to be taxed more.