Posted on 03/28/2011 8:37:51 PM PDT by Nachum
If Warren Buffett has one recommendation investors should follow, it's this: stay away from long-term fixed-income bets in U.S. dollars -- the dollar's purchasing power is heading south.
According to Bloomberg, the Berkshire chief said in India yesterday:
I would recommend against buying long-term fixed-dollar investments. If you ask me if the U.S. dollar is going to hold its purchasing power fully at the level of 2011, 5 years, 10 years or 20 years from now, I would tell you it will not.
I would much rather own businesses. It’s very easy to take away the value of fixed-dollar investments.
(Excerpt) Read more at businessinsider.com ...
Try this one on for size and read past the first couple sentences and paragraphs:
It’s like a bunch of rich guys running around acting altruistic and claiming the death tax should be reinstated or at higher levels.
What they don’t tell you is their holdings include companies who profit from estate planning, income shelter, etc.
If the government has no death tax it is a direct competition to the insurance companies, law firms, Wall Street, etc.
Without the death tax there is no need for their services and such stringent estate planning.
Here is an excellent video explaining Warren Buffet and Berkshire-Hathaway. Get a cup of coffee and watch it. You will see the scheme explained and then you will get it.
Also note what companies he has acquired, how and why:
Why This Superrich Guy Likes High Taxes
http://www.xtranormal.com/watch/8035391/
Warren Buffett Benefited From Death Tax
http://www.humanevents.com/article.php?id=15951
Wanna know why Buffet pushed for TARP bailout?
Suffice it to say Berkshire owned stock in some largest receipents of TARP valued at $13 billion around that time.
Here is the funny part:
Buffett increased his bank holdings in September, while he was arguing in the media that Congress should approve the bailout to prevent the collapse of the global financial system.
TARP was approved in October of that year, just one month later!
It’s good to be king!
He actually said “if he didn’t think the government was going to act(in a way that would positive and accretive to hihis holding) he wouldn’t have been doing anything that week”. (paraphrased)
For more read here:
http://www.mcclatchydc.com/2009/04/05/65496/buffett-champion-of-bailout-is.html
BofA in April 2009 was around $4 per share and is now trading at $13.80 per share as of 3/02/2001
Wells Fargo in April of 2009 was around $11 per share and is now trading at around $31 per share.
How about US Bancorp trading at around $14 per share in April 2009 and now trading at about $26 per share.
Goldman Sachs Group trading at some $51 dollars per share has now zoomed to above $160 per share.
How about those poor folks at American Express trading at just above $10 per share in 2009 and now they are trading at about $45 per share?
Bottom line: We, the schmuck taxpayer, paid to enhance the holdings of companies like Berkshire and investors in Berkshire.
>> I would much rather own businesses. It’s very easy to take away the value of fixed-dollar investments.
Personally, I think that the run-up in the market over the last 12 months is primarily due to entities (corporations, households, funds) with cash who are betting on inflation rather than growth.
Much as I despise Warren Buffett, I have to admit I agree with him on this point.
Isn’t that exactly what the free market is supposed to be like? Are you stirring the pot for more bureaucracy and regulation?
What?
No and I have no idea how reached that conclusion.
I don’t think the banks should have been bailed out at all.
The free markets abhor a vacuum and would quickly seal it by seeing to it those companies were gobbled up by other companies.
I’m in telecom and all the companies that went under were swallowed up by other companies and no one really blinked as it was happening.
Everything worked out fine.
No one should have access the taxpayer money like those guys did and that includes GM.
Yeah me too. His logic is sound.
Of course, he’s a globalist.
You basically said companies shouldn’t take advantage of the opportunities before them. That’s in opposition to the idea of a free market.
I didn’t basically say that and you are cracked nOOb.
No one and no company has right to taxpayer money except as a service or selling a product to the government.
EDS would be a good example of service to the government for which they should be paid.
So is Halliburton who has been a logistics company for the US Government since The Civil War.
What TARP was about ain’t nothing like free market. For instance:
GM- We ain’t ever going to get our money back and GM may have only bought themselves a lifeline. That stupid Volt car is nothing more than a lawnmower and they were counting on selling 10,000 units this year and next to repay a $500 million dollar loan. Well, they have thus far sold a mere 300 and that trend isn’t going to get them anywhere near where they need to be to repay that loan.
So all totaled we will lose about $42.5 billion as GM won’t be able to raise enough cash through stock or sales.
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