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BUFFETT: I WAS 'DUMB' (sends 21 page letter to shareholders)
NY POST ^ | 3/2/08 | RICHARD WILNER

Posted on 03/02/2009 5:38:55 AM PST by Liz

IN LETTER, ORACLE ADMITS TO ERRORS IN WORST-EVER '08

Warren Buffett admitted to doing some "dumb things" in 2008 - the worst year for Berkshire Hathaway in the 44 years he has run it. A brutal stock market decline amid a teeth-gnashing recession pushed Omaha-based Berkshire to a 96% drop in profits, its fifth straight quarterly earnings decline. Buffett, known as the Oracle of Omaha for his decades-long record of picking value investments, said buying ConocoPhillips shares when gas and oil prices were at their peak was perhaps the dumbest move in 2008. Berkshire bought 84.9 million shares at $82 a share - it closed Friday at $37.25, Buffett's paper loss was $2.6B. "I still believe the odds are good that oil sells far higher in the future than the current $40-$50 [per barrel] price," Buffett wrote... "But so far I have been dead wrong." ......Buffett explained to shareholders his investment philosophy - ".....pessimism is your friend, euphoria the enemy"......... in discussing Berkshire's buying and selling of derivatives, the seemingly indecipherable risk insurance product, Buffett told shareholders: "I expected these contracts to show a profit at expiration. Now, with the recession deepening at a rapid rate, the possibility of an eventual loss has increased." Buffett chided private equity firms, mortgage brokers, non-banks converted into banks to gain low-cost federal financing, monoline bond insurers and a host of other companies that helped bring about or are, in his view, gaining an unfair advantage during the recession.

(Excerpt) Read more at nypost.com ...


TOPICS: Business/Economy; Extended News
KEYWORDS: 2008electionbias; billionaires; billionaires4obama; buffett; buyersremorse; howtostealanelection; obamanomics; obamavoter; usefulidiot; warrenbuffett; zogbyism
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1 posted on 03/02/2009 5:38:55 AM PST by Liz
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To: Liz

He was dumb alright. And his dumbest mistake was throwing his support behind zero.


2 posted on 03/02/2009 5:40:00 AM PST by jersey117
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To: jersey117

He’ll be ever dumber,when the market tanks today.


3 posted on 03/02/2009 5:41:10 AM PST by Dr. Ursus
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To: Dr. Ursus

Why is the market tanking today?


4 posted on 03/02/2009 5:44:29 AM PST by villagerjoel ("Gun control is a prerequisite for genocide." - Unknown)
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To: Liz

Number 1 on his list of dumb things in 2008 was his support for the person and the party that is in the process of intentionally destroying the very system that allowed him to create, and maintain, his wealth in the first place. For a financial genius, he sure is stupid.


5 posted on 03/02/2009 5:46:21 AM PST by frankiep (Ron Paul was right)
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To: villagerjoel

A.I.G.


6 posted on 03/02/2009 5:46:31 AM PST by Dr. Ursus
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To: Liz

Warren Buffett warns America of 'onslaught of inflation'

Christine Seib in New York

The multibillion-dollar bailouts handed out by the US Government will bring on an “onslaught of inflation”, Warren Buffett, the legendary investor, said in his keenly awaited annual letter to shareholders.

Mr Buffett, whose Berkshire Hathaway company last year reported only the second year of negative returns in its 44-year history, predicted that the economy would remain a shambles this year and “probably well beyond”.

President Obama signed off a $787 billion (£550 billion) stimulus package to revive America's economy this month. The President has also said that he expects to spend more than the $700 billion allocated to bail out the ailing banking sector.

“Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel,” Mr Buffett said. “These once unthinkable dosages will almost certainly bring on unwelcome after-effects. Their precise nature is anyone's guess, though one likely consequence is an onslaught of inflation.”

7 posted on 03/02/2009 5:46:32 AM PST by Lady GOP
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To: villagerjoel

http://www.freerepublic.com/focus/f-news/2197124/posts


8 posted on 03/02/2009 5:47:48 AM PST by A.Hun (Common sense is no longer common.)
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To: Liz

I think he still IS dumb. So are the people who voted for zero because Buffet said to vote for him. I really cannot tell you how many people threw Buffet’s words in my face during the election. He is a pathetic POS. He loaded the gun for the LIBERAL, COMMIE takeover.


9 posted on 03/02/2009 5:48:27 AM PST by USA means Freedom
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To: villagerjoel

NIKKEI 225 03/02 - close

7,280.15 -288.27


10 posted on 03/02/2009 5:48:37 AM PST by Lady GOP
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To: villagerjoel

The market will tank today and every day until someone comes forth to kill the socialization of the American economy. Is there a brave soul alive who can do this?


11 posted on 03/02/2009 5:50:37 AM PST by Lowcountry (RIP: Peterdanbrokaw)
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To: villagerjoel

Why is the market tanking today?

Foreign Markets took a big hit overnight.


12 posted on 03/02/2009 5:51:02 AM PST by Lawdoc (My dad married my aunt, so now my cousins are my brothers. Go figure.)
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To: Lady GOP
Warren Buffett warns America of 'onslaught of inflation'

Since he supported the big Zero, he shares in the blame of what is to come.

13 posted on 03/02/2009 5:53:32 AM PST by NeoCaveman (hey who ordered the trillion dollar crap sandwich? FUBO)
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To: Lady GOP
NIKKEI 225 03/02 - close 7,280.15 -288.27

I remember when he Nikkei was at 40 grand. That was 1989.

14 posted on 03/02/2009 5:54:27 AM PST by NeoCaveman (hey who ordered the trillion dollar crap sandwich? FUBO)
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To: Liz
Reading this guy, I'm reminded of a scene from the movie Alien where Ripley (Sigourney Weaver) confronts Ash (Ian Holmes) and she asks him about "their guest" (the alien on Kane [John Hurt]'s face). He goes through all the scientific explanations and she asks what does he mean by all of it.

ASH: Well, it's an interesting combination of elements, making him a tough little son-of-a-{bleep}.

RIPLEY: And you let him in.

15 posted on 03/02/2009 5:54:43 AM PST by Sister_T (The Obama Administration = EPIC FAIL!)
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To: Lowcountry
Is there a brave soul alive who can do this?

I'd volunteer for jury duty ...

16 posted on 03/02/2009 5:54:45 AM PST by clamper1797 (FUBO ... The Kenyan Lincoln)
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To: villagerjoel

I don’t think the downward tread is going to stop until Obama shuts his trap and Congress stops “fixing” the problem.


17 posted on 03/02/2009 5:56:24 AM PST by Psycho_Bunny (ALSO SPRACH ZEROTHUSTRA)
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To: NeoCaveman

did he admit that was his biggest mistake?


18 posted on 03/02/2009 5:56:30 AM PST by gusopol3
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To: Liz

Another Obama zomby who bought into the commie left.


19 posted on 03/02/2009 5:56:55 AM PST by hgro (Jerry Riversd)
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To: Liz

ANYONE who voted / supported FUBO is either a dupe or a traitor ... which one are you


20 posted on 03/02/2009 5:57:46 AM PST by clamper1797 (FUBO ... The Kenyan Lincoln)
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To: clamper1797

What does FUBO mean?


21 posted on 03/02/2009 5:59:10 AM PST by Sister_T (The Obama Administration = EPIC FAIL!)
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To: gusopol3
did he admit that was his biggest mistake?

doubtful.

22 posted on 03/02/2009 5:59:23 AM PST by NeoCaveman (hey who ordered the trillion dollar crap sandwich? FUBO)
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To: Lady GOP

Warren Buffett warns America of ‘onslaught of inflation’


But the key questions is WHAT will inflate..............


23 posted on 03/02/2009 5:59:28 AM PST by PeterPrinciple ( Seeking the truth here folks.)
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To: Sister_T

fubared by Obama


24 posted on 03/02/2009 5:59:52 AM PST by Richard Kimball (We're all criminals. They just haven't figured out what some of us have done yet.)
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To: Liz

Some of his dumbest moves has been to purchase large amounts of newspaper chains, which have continued to bottom out, and for which there is no future.


25 posted on 03/02/2009 6:00:40 AM PST by ConservativeMind (Who is now in charge of the "Office of the President-Elect"?)
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To: villagerjoel
"Why is the market tanking today?"


And just about every day for the foreseeable future perhaps?

26 posted on 03/02/2009 6:01:04 AM PST by G.Mason
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To: Liz

Buffet was in your face Pro Obama all of last year. His judgment sucks.


27 posted on 03/02/2009 6:01:45 AM PST by Rosemont
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To: Sister_T

F U Barack Obama ... and all those who voted for Kentian Marxist


28 posted on 03/02/2009 6:02:35 AM PST by clamper1797 (FUBO ... The Kenyan Lincoln)
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To: Sister_T
FUBO
29 posted on 03/02/2009 6:06:20 AM PST by G.Mason
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To: Liz
"But so far I have been dead wrong."

About your liberal politics and those you support? Yes you have, Warren.

And look what you and the ones you support have done to our country, its economy and markets and to its future and the future of our children and grandchildren.

You, sir, are a dumbass. Why couldn't you keep that to yourself and your stockholders?

30 posted on 03/02/2009 6:11:30 AM PST by GBA
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To: G.Mason

lots of the late mortgages went to illegals with the assumption that if the people already living there couldn’t meet the payment, they’d just take in more boarders (squatters?) til they could. When immigration reform failed, and some modicum of enforcement of existing law with ICE raids, etc., occurred, the flow of newcomers from the spigot was attenuated , so the assumptions about ability to pay were overturned.


31 posted on 03/02/2009 6:11:36 AM PST by gusopol3
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To: clamper1797

I thought so. Thanks, everyone who responded.


32 posted on 03/02/2009 6:13:41 AM PST by Sister_T (The Obama Administration = EPIC FAIL!)
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To: Liz
He bought oil company stocks to make profit but his liberal friends including Obama have been bashing these companies 24/7 and they want to tax them to death.
33 posted on 03/02/2009 6:14:33 AM PST by jveritas (God Bless our brave troops)
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To: villagerjoel

Because we are a Primary Bear Market [2-3 years, shaving near 75%]


34 posted on 03/02/2009 6:21:43 AM PST by ignorancerunsrampant (Where is the Court of Common Sense?)
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To: G.Mason

Stupid question. Has the mandate by Congress forcing banks to give loans to basically anybody and everybody been reversed or eliminated? In other words, has the main reason for our current economic situation been corrected?


35 posted on 03/02/2009 6:22:16 AM PST by Lee'sGhost (Johnny Rico picked the wrong girl!)
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To: ConservativeMind; Grampa Dave
...among Buffet's dumbest moves.....purchasing large amounts of newspaper chains, which have continued to bottom out, and for which there is no future.

FReeper Dave has the gloom and doom on newsie stocks.

36 posted on 03/02/2009 6:27:19 AM PST by Liz (I was like Snow White, then I drifted. Mae West (on liberalism).)
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To: Liz

Buying GE at $19 was just as bad. Conoco will likely come back. GE is questionable if they don’t split off their financial arm.


37 posted on 03/02/2009 6:28:27 AM PST by zek157
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To: jveritas

Equity is falling faster than it can be taxed. Perhaps there is a correlation?


38 posted on 03/02/2009 6:32:02 AM PST by baltoga
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To: Liz

Warren was dumb to support Obama, too. Thanks loads, Warren.


39 posted on 03/02/2009 6:32:02 AM PST by popdonnelly (I don't live my life to gain the approval of liberals and leftists.)
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To: jersey117

“He was dumb alright. And his dumbest mistake was throwing his support behind zero.”

My thoughts exactly. A Democrat Congress and a far left Democrat President thanks, in part, to Warren Buffett. Maybe Warren can explain to us how he thought socialism would be good for capitalism.


40 posted on 03/02/2009 6:32:39 AM PST by ChessExpert (Barack Hussein Obama's America: the land of the regulated and the home of the taxed)
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To: baltoga

“Equity is falling faster than it can be taxed. Perhaps there is a correlation?”

I think you are on to something.


41 posted on 03/02/2009 6:34:59 AM PST by ChessExpert (Barack Hussein Obama's America: the land of the regulated and the home of the taxed)
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To: Liz

BUFFETT: I WAS ‘DUMB’

....First step is admitting the mistake....


42 posted on 03/02/2009 6:37:37 AM PST by Le Chien Rouge
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To: Lady GOP
The major thing preventing inflation right now is that it will discourage Asians (manily ChiComs) from buying our debt.

Europe is getting it a lot worse than us-- which is why the dollar has gained ground against the Euro and UK Pound, but lost against the yen.

Under these circumstances, we will continue to have an easier time selling debt than Europe.

43 posted on 03/02/2009 6:43:53 AM PST by Vigilanteman (Are there any men left in Washington? Or, are there only cowards? Ahmad Shah Massoud)
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To: Le Chien Rouge
"I still believe the odds are good that oil sells far higher in the future than the current $40-$50 [per barrel] price," Buffett wrote

Buffet is invested in energy prices going up, so which side of the cap & trade (scam "global warming" carbon tax scheme based on total acceptance of perhaps the greatest lie of all time and source of Obama's 57 billion est. 2009 budget energy tax revenue increase) fence do you think he is on?
44 posted on 03/02/2009 6:53:26 AM PST by TimPatriot
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To: GBA
You, sir, are a dumbass.

No, it's an annoying act. He's the master of ah shuckism, meant to deflect anger and resentment. The reason he supports the Democrats is envy deflection, just like all other limousine liberals. He has more to worry about from the left side of the bell curve than from conservatives. He's perfected the act and it works every time. His "approval ratings" among the hoi polloi are amazingly high for an old rich white man playing an act.

45 posted on 03/02/2009 6:54:08 AM PST by Reeses (Leftism is powered by the evil force of envy.)
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To: Sister_T
Yes, I drive a Subaru..it confuses Liberals. subaru
46 posted on 03/02/2009 6:57:06 AM PST by ladyvet (WOLVERINES!!!!!)
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To: Liz

“among Buffet’s dumbest moves.....purchasing large amounts of newspaper chains, which have continued to bottom out, and for which there is no future.”

Buffet, the Whoreacle from Omaha. is a liberal fund manager. Liberal fund managers have kept the dinosaur fish wraps alive the past 3-5 years by buying their soon to be worthless stock with their fund owner’s money.


47 posted on 03/02/2009 6:58:56 AM PST by Grampa Dave (Zer0's friends are criminals, foreign/domestic terrorists, perverts, sexual deviates or tax cheats!)
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To: ladyvet

“Yes, I drive a Subaru..it confuses Liberals.”

It would confuse me out here in Wino Country, Californicator.

A couple of weeks ago my wife and I saw the usually liberal Volvo station wagon loaded with anti Obama/Rat stickers and pro Palin stickers. She laughed and said the old Volvo was probably dying from a split personality.


48 posted on 03/02/2009 7:04:30 AM PST by Grampa Dave (Zer0's friends are criminals, foreign/domestic terrorists, perverts, sexual deviates or tax cheats!)
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To: Liz

“buying ConocoPhillips shares when gas and oil prices were at their peak was perhaps the dumbest move in 2008.”

I would put endorsing Obama as his dumbest move.


49 posted on 03/02/2009 7:06:22 AM PST by ColdWater
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To: Liz

If he had any guts he’d tell the American people his biggest mistake......supporting a socialist takeover by Obama and his Chicago thugs.


50 posted on 03/02/2009 7:07:10 AM PST by kenmcg (cOMMBYAH)
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