Friday, August 26, 2011

On the places where Warren Buffett chooses to invest his money

Zillionaire Warren Buffett has been in the news a lot. 
First, he made worldwide headlines by complaining in a New York Holy Times editorial that he isn't forced to give enough money to our government. 
This is strange.  Anyone wanting to give more money to the government can do so by hitting this link, which gives you some helpful information, plus this address:

Gifts to the United States
U.S. Department of the Treasury
Credit Accounting Branch
3700 East-West Highway, Room 622D
Hyattsville, MD 20782

No New York Times editorials are necessary.  No complaining is necessary.  No righteous posturing is required.  All Mr. Buffett has to do is write a check for the amount he thinks he should be paying, mail it to that address, and his money will be wasted just as quickly as the money that Washington is borrowing from China.  (And if Mr. Buffett wants some publicity and increased stature amongst The Statists, that would do it.  The more rational half of the nation, however, would know that he'd gone stark, raving mad.) 

Or perhaps Buffett just wants other people to pay more money, but not himself.  We'll never know.  You can go here to read an analysis of why Buffett's claims about his tax rate are somewhat misleading.

Here's something else about how Warren Buffett chooses to spend his money, this time from The Wall Street Journal:

Warren Buffett's Berkshire Hathaway Inc. will invest $5 billion in Bank of America Corp., giving the nation's biggest bank a much-needed vote of confidence amid questions about the credibility of its management.What do you think? Will that figure shore Bank of America up adequately for a return to profitability? Is Buffett seizing a golden opportunity, or taking too risky a gamble?

Hmmmm..... This is a strange one.  You can go elsewhere on the internet and read that it isn't just the 5 billion investment that has caused Bank Of America's stock to increase.  It's that Warren Buffett, The Sage of Ohama, has taken a look at Bank Of America, thought about it, and declared BofA to be worthy of his money and his shareholders' money.  If Warren Buffett says it's a good investment, it's a good investment. 

Why would Warren Buffett voluntarily throw money at a risky proposition like a failing bank, but complain about not being forced at gunpoint to give more money to a failing government? 

I think it is because Bank Of America is probably a good investment, and a good use of Buffett's money, and a good use of the money of the investors who trust Warren Buffett. 

The United States Government, under present leadership, is not. 

Money talks, bullshit walks.  Especially if it is Warren Buffett's money. 

1 comment:

Unknown said...

Great post. Cant add anything.