Why Do More People Just Not Say: Hypocrite

From Bloomberg Nov 4, 2011:

Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) said third-quarter profit fell 24 percent as derivative bets declined in value.

From BBC March 4, 2003:

Mr. Buffett argues that such highly complex financial instruments [derivatives] are time bombs and “financial weapons of mass destruction” that could harm not only their buyers and sellers, but the whole economic system. Some derivatives contracts, Mr. Buffett says, appear to have been devised by “madmen”. In his letter Mr. Buffett compares the derivatives business to “hell…easy to enter and almost impossible to exit”…

He might be rich, but let’s face it: he is one manipulative character.

16 thoughts on “Why Do More People Just Not Say: Hypocrite

  1. I remember a quote from Munger that was pretty negative on derivatives. In all fairness to Warren in that particular BBC quote, he was pretty prescient in his analysis.

  2. Fairness? He uses them. That was my point. After all his grandfatherly advice–he is knee deep–today. That’s the point.

  3. Buffet is as much a hypocrite any politician.

    He was beating the drum against derivatives because it “sounds good”.

    He is as much a politician as there is.

  4. I’m so glad he hasn’t pulled the wool over your eyes too, Michael. It seems as though everyone has fallen for the myth of Warren Buffett. To be honest, I’ve never heard anyone of note say anything positive about him. Paul Tudor Jones, Steve Cohen and Michael Steinhardt have all been critical of him.

  5. I’m not a Buffett at all and he is a hypocrite for his views on derivatives. Just pointing out that this statement “highly complex financial instruments [derivatives] are time bombs and ‘financial weapons of mass destruction’ that could harm not only their buyers and sellers, but the whole economic system…” was solid analysis in 2003.

  6. With all the books out there worshiping Warren Buffet,its about time that someone writes a book telling the truth about him…How he made millions making big bets,using flawed and dangerous methods (averaging down,etc…).
    Mr Covel,you could write that book!Just an idea..

  7. total hypocrite – dont do derivatives but he uses them as much as anyone. he’s a “value guy” but goes out and buys MA and DG, two momentum stocks, and only new stocks that have done well for him in years. hike taxes on the “rich” yet allow BRK to fall behind on taxes owed? and if he thinks millionaires need to pay more, and that government is the correct conduit, then why has he given 98% of his fortune to bill gates’s foundation, a PRIVATE foundation? recall the editor of the wall street journal nearly 100 yrs ago, when asked why the millionaires are always for higher income taxes. he responded “that’s easy, they’ve already made their money.”

    “I think that on balance the Gates Foundation, my daughter’s foundation, my two sons’ foundations, will do a better job with lower administrative costs and better selection of beneficiaries than the government.”

  8. Buffet sold puts, among other timebombs, yet his bet that the economy would recover blew up in his hands……..

    “everyone’s a genius in a bull market”

  9. I think Buffet’s dribble about taxing the rich is partly responsible for this Occupy Wall street crap. As I have said before he’ll say or do anything to get his old mug on T.V. He has gone Hollywood and he is a politician.

  10. Mike,

    People who know what they are talking about (or who are worth listening to) in finance know he is a hyporite.

    Your point on why people do not realise this, is if I may ask, what people?

    Do you mean Bartoromo and her idiots on CNBC who are paid by brokers to keep selling trash? Or the biased financial press who continuously hoodwink the public into thinking that owning stocks is the best investment plan as long as you are in it for the long term? Or the so called investment advisors who are supposedely well versed in economics and finance and delude the public into thinking that their “experience and know how” are best suited to managing wealth (but wow Madoff was an anomaly)? Or the bankers who got bailed out by the tax payers so that they can still enjoy their lap dancing, drug taking habits or displaying the trophy wife and kids and that condo that no else was able to buy (telling you that the credit crisis was a tail event)?

    I don’t know Mike. But I think you will find that most trend followers recognise that Buffet is no orcale and as much a hypocrite as any politician out there.

    “And the truth is, there is something terribly wrong with this world, isn’t there?” (V for Vendetta).


  11. MF Global had quite a few of the smartest men in the financial industry managing their assets. They also had access to the ultimate insider info, because their CEO, Jon Corzine, was a Federal Reserve Bankster insider. So, how could so many of the nation’s brightest make such boneheaded decisions?

    Once again I want to emphasize that for every loser in the financial derivatives market, there is an equal and opposite winner, making tons of cash.

    Since 70% of the 1500 trillion dollar derivatives market is bets against interest rates going up or down, one would think that the former Chairman of Goldman Sachs would have some kind of clue on what the banksters were doing with interest rates. Some would argue that the loss of $40 billion dollars was a huge mistake. I would argue that there are no mistakes when it comes to the Satanic Psychopaths!

  12. Investments is one of the few professions where one’s performance is obvious – a look at the numbers is enough. Why do you all care so much what he said or did not say? Why does it matter if he is a hypocrite or not? Do you base your decisions on his words?

  13. So Mak the strategy itself doesn’t matter as long as it makes money? That was LTCM’s view.

    In terms of Buffett, he ‘sells’ one thing to investors and does something else. Ethics matter.

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