Comments on: What is Buffett’s Ideology?

By: Victor Machado

Victor Machado — Thu, 20 May 2010 18:45:13 +0000

I am not a wizard in investing in fact I am less than an amateur. For long time I have been an admirer of Buffett success whishing be able to do like he does, (don’t we all?) but lately I have doubted very much Bufett’s idolatry and success. I think it is more a myth than a reality. Don’t take me wrong he has been very successfully in the market, but isn’t there an inside manipulation all around? He knows every important dude in the market business, he went to school with Secretaries of the Treasury, Directors of this and that agency, he owns Moody’s and others alike, controls Goldman, controls fathers and sons, mothers and daughters, and other major financial companies, some how has a big influence on the SEC. He often dines with all those gurus that know in advance if interest rates will go down or up in seven weeks, the CPI is going to be south or north, etc. all at the course of a fancy dinner while you and I (at least I) trying to figure out where the market will be when we finish our hamburger. Honestly I trust more your analysis and comments (and guessing) than the success of Mr. Buffett, special after knowing how good of a friends Mr. Buffett and H. Paulson (and others)are, and analysing his latest mistakes.
Thank you for the fantastic, superb and (especially) honest job you been doing.
Victor Machado
Los Angeles, CA

By: Dividend Tree

Dividend Tree — Wed, 15 Apr 2009 17:37:21 +0000

JJ: Thanks for inputs. “lacking practical presentation…” can also be interpreted as business acumen.

Best Wishes,

By: Dividend Tree

Dividend Tree — Wed, 15 Apr 2009 17:35:34 +0000

Matt,
Too much money is what I was attempting to highlight indirectly. Can’t Buffett invest a billion or two in good start up companies in US? Just imagine how many small startup can be promoted by 2 billion dollars! He gave GS/GE a boat load of money, same folks who at first place brought their own company down. Can’t he follow his own advise of buy America? He could find a small battery company in China, but not in US?

My point is Buffett ideology is about ruthless business acumen on profitability! It is just not value alone.

Thanks for stopping by. That was good discussion point.

By: Dividend Tree

Dividend Tree — Wed, 15 Apr 2009 17:28:00 +0000

Robert,
I also do not like BH shares because they don’t have dividends. Its the halo effect that has been built around BH that I do not like. It is a great holding company, but what’s in for me?

On low risk speculation: If that’s the case then anything that is not sure (or has some risk) will be low risk speculation. Even the hard wall businesses are then low risk speculation. Isn’t it?

Dividends provide a sense of involvement with the company, a sense that management shares their bounty, a sense that you are getting something back for remaining invested.

Thank you for stopping by and leaving a thoughtful comment.

By: Robert C. Gray

Robert C. Gray — Mon, 13 Apr 2009 01:04:36 +0000

The much more interesting thing about Buffett is his out-integrity when it comes to providing investment returns. If you read his annual letters, they are filled with prideful statements about the returns the operating companies provide to BH. One the other hand, BH provides not one-cent of return/yield to its equity owners. Since, without a dividend, all that’s available is speculating on the BH stock. He like most of the financial world mis-uses the term investing/investor when the right term is speculating/speculation. And – by the way – Graham’s “value investing” is also spin for “low risk speculation.” I’m hoping that you bloggers who form DIV-net are the forum to begin to get the truth out. Without a dividend/yield return, a stock can ONLY be a speculation. The is NO investment.