Warren Buffett: Should the Oracle of Omaha stop picking stocks?

Discussion in 'The Howard Stern Show' started by rory, Jan 20, 2015.

  1. rory

    rory Well-Known Member

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    By Jeff Macke3 hours ago

    ^GSPC) but could not save us from another drop on the week. So far this year the index for grown ups is down 1.92%. That's meaningless noise to most traders but the long-term is made of nothing but moments. If you want to beat the market over a period of years you have to at least occasionally outperform every so often on a daily basis.

    Consider Warren Buffett. The Oracle of Omaha is justifiably regarded as one of the great investors in history but is he putting less zip on the ball than Peyton Manning when it comes to stock picking lately? Still pretty good but obviously slipping. Before you lunge to his defense, as if the 3rd richest man on earth needs your protection, let's wait a couple days. By then we will have heard from Dow members (^DJI) IBM (IBM) and American Express (AXP), two of the bigger recent flops in the Oracle's portfolio of public shares commonly known as Berkshire Hathaway (BRK-B).

    IBM reports tonight and it's been one of the biggest losers of Buffett's career. Buffett's Berkshire owns 68 million or so shares at an average cost of over $170. That puts him down 10%. Worse still apparently Buffett and IBM itself are the only ones buying shares of late. Which makes sense given that CEO Ginni Rometty pulled all long term guidance last quarter. Not that it stopped IBM from increasing its buyback in the same announcement. Despite what figures to be around $7B in repurchases IBM is expected to show earnings dropping 11.5% tonight; even worse than the 10% revenue drop. For you buyback fans, that's not how its supposed to work. Buybacks are supposed to prop up EPS. IBM is Exhibit A in why that thinking is wrongheaded.

    Amex is tomorrow after the bell. It's been a huge winner for Buffett over decades but not so hot lately, down 6% for the last year. Membership has privileges but it comes at a price.

    Why do those companies matter? Well they make up 20% of the publicly traded holdings of the best investor ever. Buffett is great at Canadian donut buyouts like Tim Horton (THI.TO) and Burger King funding but over the last 52-weeks his top 4 holdings, more than half his portfolio, is flat. Berkshire on the other hand is up 30% in the same time period.

    As they say, something's gotta give. Buffett will forever be Americans hard-ass financial uncle but if you buy alongside him on terms available to the public you've gotten killed. No matter how much he makes on trains eventually equity positions have to perform. Unless Amex and Coca-Cola (KO) pick up the pace Berkshire is looking a little expensive at these levels.
    http://finance.yahoo.com/news/warren-buffett-s-big-week-124817838.html
     
  2. OV

    OV Rapscallion

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    He may have lost a step but his track record speaks for itself. Warren Buffett is one of the greatest men alive and the first person I'd pick on one of those "who would you most like to have dinner with?" exercises.
     
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  3. rory

    rory Well-Known Member

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    The Oligarch of Omaha is a well know socialist, just like Armand Hammer before him.

    He's lining his pockets with other people's money while selling our freedom down the drain
     
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  4. The Snork

    The Snork Well-Known Member VIP Gold

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    Gee, anyone who worries about a 10% drop in a stock they own shouldn't be trading stocks. Lae last year IBM signed an agreement with Apple to co-develop, sell, and support their products in enterprises. I think that bodes well for both of them.
     
  5. rory

    rory Well-Known Member

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    Buffett avoided tech forever until he talked himself into believing that IBM's brand name and seeming permanent ability to gouge long-term customers made them a good buy. Turned out he was wrong. He prides himself on knowing about the character of a business's leaders but he blew it by not seeing the obvious, that IBM's management has been using buybacks to hide a high level of stock options for executives even while the company went downhill. How could he not have seen that?
     
  6. Stew Nod

    Stew Nod Hello VIP

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    He has had his head up Oblama's ass since 08. Almost like he's willing to fall on his sword by buying shit to make the guy look good. Idk, maybe he's old and just doesn't care anymore?
     
  7. BringBackJackie

    BringBackJackie Well-Known Member Banned User

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    There comes a time in sports, investing, entertainment (Stern) where you reach a certain age and your ego has to be strong enough to leave with your legacy intact. :shitcoffee:
     
  8. oski

    oski Jump For Cock

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    he's great at buying companies. the pipeline and railroad purchases were genius of late and of course geico/see's canady/etc before. he sucks at buying minority interests in stocks though.
     
  9. joemama

    joemama Well-Known Member

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    Buffett is a asshole who whines about raising taxes on people while fighting the government about paying he's own. He's a straight up bitch at this point.
     
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  10. oski

    oski Jump For Cock

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    he's the biggest tax cheat in American history and it's not even close. he had ample opportunity to pay taxes in the past and did everything possible to avoid them.
     
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  11. Pickle Jar

    Pickle Jar Well-Known Member

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    Yeah too bad the asshole can't take it with him.
     
  12. rory

    rory Well-Known Member

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    Warren is a modern day carpet bagger, he lays in wait till a calamity comes along (often caused by his beloved liberals, then he swoops in, and gets deals that the retail investor will never see. The deal he got on Goldman Sachs, and Bank of A are just poster children of his style.
     
  13. scoobyla

    scoobyla Well-Known Member

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    only a fool would pay a dime more than they have to, but that doesnt mean u have to agree the current system is perfect
     
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