Comments on: The 5 Most Overrated Value Investors http://stockmarketsage.com/2009/01/25/the-5-most-overrated-value-investors/ Sat, 31 Jul 2010 03:14:39 +0000 http://wordpress.org/?v=2.6.5 By: Mr. Roubini, Bank Nationalization Will Never Happen. | http://stockmarketsage.com/2009/01/25/the-5-most-overrated-value-investors/#comment-7 Mr. Roubini, Bank Nationalization Will Never Happen. | Sun, 15 Feb 2009 16:12:05 +0000 http://stockmarketsage.com/?p=97#comment-7 [...] play is a fool’s errand at this point. We are stuck in a massive deflationary cycle. Do you see Warren Buffett touting gold? Nope. He is buying corporate debt like a wild man at this point. He isn’t playing [...] [...] play is a fool’s errand at this point. We are stuck in a massive deflationary cycle. Do you see Warren Buffett touting gold? Nope. He is buying corporate debt like a wild man at this point. He isn’t playing [...] ]]> By: admin http://stockmarketsage.com/2009/01/25/the-5-most-overrated-value-investors/#comment-5 admin Tue, 27 Jan 2009 15:49:43 +0000 http://stockmarketsage.com/?p=97#comment-5 Actually, they value his company less than they did 5 years ago, but pretty close. I think Warren would admit to Becky on CNBC when the cameras are off that he didn't see the serverity of this financial crisis coming. Just like everyone else, he got blindsided to the depth of this problem. His play on GS will take awhile to come back since leverage will be taken away from the brokerage houses. I am still trying to get a feeling for AMEX right now. They applied to be a bank holding company, got approved, and then release numbers today that say the "only" had a net income of $172 million...in the LAST 90 DAYS! How do you "cry uncle" with the left hand and then with the right hand you have a NET income of $172 million in 90 days. Granted, it was over 79% off from the previous year, but $172 million in net income is still nothing to sneeze at in these times. The RR plays are going to be the next to go down the tubes for now. If you check out the WSJ on 1/27/09, section C1 there is a write up about oil and why RR profits are about to take a long hit. They say don't be fooled by Norfolk Southern and the dividend raising, it is a lagging indicator due to oil prices. I have become the new Doug Kass! Just kidding! Will Warren be right? Yes. Will it take 10 years or so depending on 5000 factors. Maybe. If you have 10 years, great. If you have enough capital to allow BRKA to float around up or down 10% in price for a year or two, then you should be fine. The one thing that still gets me a little crazy is hearing he doesn't use a computer or calculator to do his investments. He has a nice size derivative position that has blown up on the balance sheet. How or why did he take this position if he doesn't undertand these complex financial instruments. People with complex computers and calculators can't figure out what they are worth. If he didn't understand it, and ran through his rules of investing, why did he take them on and buy them? He is much smarter and more sophisticated then he lets on during his interviews. He plays like Huck Finn in interviews, but he is way sharper in real life. Actually, they value his company less than they did 5 years ago, but pretty close.

I think Warren would admit to Becky on CNBC when the cameras are off that he didn’t see the serverity of this financial crisis coming. Just like everyone else, he got blindsided to the depth of this problem. His play on GS will take awhile to come back since leverage will be taken away from the brokerage houses. I am still trying to get a feeling for AMEX right now. They applied to be a bank holding company, got approved, and then release numbers today that say the “only” had a net income of $172 million…in the LAST 90 DAYS! How do you “cry uncle” with the left hand and then with the right hand you have a NET income of $172 million in 90 days. Granted, it was over 79% off from the previous year, but $172 million in net income is still nothing to sneeze at in these times.

The RR plays are going to be the next to go down the tubes for now. If you check out the WSJ on 1/27/09, section C1 there is a write up about oil and why RR profits are about to take a long hit. They say don’t be fooled by Norfolk Southern and the dividend raising, it is a lagging indicator due to oil prices.

I have become the new Doug Kass! Just kidding!

Will Warren be right? Yes. Will it take 10 years or so depending on 5000 factors. Maybe. If you have 10 years, great. If you have enough capital to allow BRKA to float around up or down 10% in price for a year or two, then you should be fine.

The one thing that still gets me a little crazy is hearing he doesn’t use a computer or calculator to do his investments. He has a nice size derivative position that has blown up on the balance sheet. How or why did he take this position if he doesn’t undertand these complex financial instruments. People with complex computers and calculators can’t figure out what they are worth. If he didn’t understand it, and ran through his rules of investing, why did he take them on and buy them?

He is much smarter and more sophisticated then he lets on during his interviews. He plays like Huck Finn in interviews, but he is way sharper in real life.

]]> By: Eric Rasbold http://stockmarketsage.com/2009/01/25/the-5-most-overrated-value-investors/#comment-4 Eric Rasbold Tue, 27 Jan 2009 03:41:09 +0000 http://stockmarketsage.com/?p=97#comment-4 Dig your site. We need more of them. Warren is Great because he understands compassion and charity. Look at his take home, I've certainle made less, but took a lot more than that! Warren's strategy may be outmoded, which remains to be seen, but he has put in his time and made a better world of it that he was there. He can die sucessful, even if he ends up broke. He won't, of course. Dig your site. We need more of them.

Warren is Great because he understands compassion and charity. Look at his take home, I’ve certainle made less, but took a lot more than that! Warren’s strategy may be outmoded, which remains to be seen, but he has put in his time and made a better world of it that he was there. He can die sucessful, even if he ends up broke.

He won’t, of course.

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