[threadbear]

He's just wrong. He's done well capitalizing on the phenomenon he describes, smart money based on fundamentals, followed by stupid money. But the stupid money hasn't even begun to look at gold. Right now as I type this, hundreds of investors are pulling out of the speculative real estate market in Victoria, B.C. Where do you think they're going to put their money? Energy, gold? You bet. This has just begun. It'll take a good year before gold spec is over. And what is meant by the fundamental value of gold? Gold doesn't have a "fundamental value". It rises and falls on confidence, or lack of, in the American petro dollar.

[Heineken]

Also, Buffett is counting on the typical commodities cycle asserting itself---boom followed by bust. Unlike Buffett, we POers know that this time it's different (barring a major recession or a depression, in which case everything goes bust, at least for a while).

[threadbear]

$this->bbcode_second_pass_quote('Heineken', 'A')lso, Buffett is counting on the typical commodities cycle asserting itself---boom followed by bust. Unlike Buffett, we POers know that this time it's different (barring a major recession or a depression, in which case everything goes bust, at least for a while).

[oilluber]

$this->bbcode_second_pass_quote('NeoPeasant', 'A')t his annual Berkshire Hathaway meeting, Warren Buffet said the following about commodities:
$this->bbcode_second_pass_quote('', 'I') don't think there's a bubble in agricultural commodities like wheat, corn and soybeans. But in metals and oil there's been a terrific [price] move. It's like most trends: At the beginning, it's driven by fundamentals, then speculation takes over. As the old saying goes, what the wise man does in the beginning, fools do in the end. With any asset class that has a big move, first the fundamentals attract speculation, then the speculation becomes dominant.

Once a price history develops, and people hear that their neighbor made a lot of money on something, that impulse takes over, and we're seeing that in commodities and housing...Orgies tend to be wildest toward the end. It's like being Cinderella at the ball. You know that at midnight everything's going to turn back to pumpkins & mice. But you look around and say, 'one more dance,' and so does everyone else. The party does get to be more fun -- and besides, there are no clocks on the wall. And then suddenly the clock strikes 12, and everything turns back to pumpkins and mice.

[oilluber]

I believe Buffet unloaded his silver hoard.
I really don't think of Buffet as an expert in the commodities field.
Also, he is expecting inflation from USD,,,, so what would you
invest in under those circumstances ??
Coca Cola and Walmart or Suncor and gold ??

[GOforGandO]

Why do you care what Warren Buffet is doing? Oil was down on a short term basis seven days ago. Gold is up. When a signal is given I will go with it. Listen to your own system.

[SoothSayer]

>> He's just wrong.

Yep, just plain wrong.

That explains why he has been one of the world's most successful business men for decades.

Yep, total dumbo.

[Heineken]

But we know that the economic models that applied during the century-long bonanza of cheap and growing energy supply won't operate in the post-PO era. The days of robber barons like Buffett are numbered. His "genius" and methods will no longer be valid, since further economic growth will no longer be possible---indeed, "growth" will become negative.

[SoothSayer]

Buffett is one of the brightest guys around - he even mentors Bill Gates who is no dumbo himself.

Buffet and Gates would survive in almost ANY environment (possibly excluding Max Max scenarios)

[CARVER]

Warren Buffett Sells the Family Silver
$this->bbcode_second_pass_quote('', 'A')ccording to news sources today, Buffett told shareholders, “We had a lot of silver at one time but we don't have it now.”

Buffett said that Berkshire had not benefited from the particularly steep rise in silver prices.

“I bought it very early, I sold it very early. Other than that it was perfect,” he joked.

[MOCKBA]

$this->bbcode_second_pass_quote('Heineken', 'A')lso, Buffett is counting on the typical commodities cycle asserting itself---boom followed by bust. Unlike Buffett, we POers know that this time it's different (barring a major recession or a depression, in which case everything goes bust, at least for a while).

[Heineken]

$this->bbcode_second_pass_quote('SoothSayer', 'B')uffett is one of the brightest guys around - he even mentors Bill Gates who is no dumbo himself.

Buffet and Gates would survive in almost ANY environment (possibly excluding Max Max scenarios)

[Heineken]

$this->bbcode_second_pass_quote('MOCKBA', '')$this->bbcode_second_pass_quote('Heineken', 'A')lso, Buffett is counting on the typical commodities cycle asserting itself---boom followed by bust. Unlike Buffett, we POers know that this time it's different (barring a major recession or a depression, in which case everything goes bust, at least for a while).

[strider3700]

The fact that they sold their silver off early is interesting.

A lot of PO'ers and gold/silver bugs are ranting about insane values coming up, $2000 gld/$80 silver... yet someone like buffet didn't take the ride.

He probably did double his return though since If I remember correctly he bought in really early.

I remember seeing that gates was getting into biodiesel plants awhile back. We all know that this is unlikely to work long term but it could result in some pretty nice returns in the meantime.

Anyways what billionaires say and what they do are quite often very different things. It's still interesting to see what they are doing

[greenworm]

I have a couple of theories I'd like to share. Concerning metals, he just wanted to slow it down enough to grab your attention so he could introduce his next great adventure, the israeli metal company, which apparently is leveraged quite nicely in a multitude of currencies. What is even funnier is that Cramer just challenged the earning potential of that company up against two israeli companies he just picked. Pretty ballsy despite the really bad picks he chose. It somewhat worked as gold finally pulled back, gold stocks did as well, but not by much. I guess he assumes we will just plunk gold investments into his new toy, fat chance. The dollar is ill and gold is the cure. Gold pulled back because oil has been pulling back which is because dubya stopped filling up our reserves/fox news decided to shut up about iran. What is sad about his new adventure is that it sounds very reasonable being exposed to a basket of currencies, but all the bonehead had to do was transfer this wealth over time to the canadian dollar or the euro. Heck, his buddy billy gates did this awhile ago.

[threadbear]

Aaaah...Now I get it. Buffet is creating his own reality...and our's too.

Buffet is a hyper-Capitalist. I don't think it ever dawns on these people that diminishing natural resources will place a ceiling on economic growth, forever. From here on in, after several decades of war, it'll be allocation, rationing, recycling. We won't be just using blue boxes, we'll be living in them.

Capitalism, particlarly globalization, like centralized Communism, is a joke. We are beginning to live out the punchline now, as the Communists did, beginning a couple of decades ago.

[advancedatheist]

It looks like oil dropped only a dollar or so on Monday. Like I said, why should people care what Buffett says, considering that he has less control over the physical supply and the deteriorating political situations in certain oil provinces than the President?

[MOCKBA]

$this->bbcode_second_pass_quote('Heineken', '')$this->bbcode_second_pass_quote('MOCKBA', '')$this->bbcode_second_pass_quote('Heineken', 'A')lso, Buffett is counting on the typical commodities cycle asserting itself---boom followed by bust. Unlike Buffett, we POers know that this time it's different (barring a major recession or a depression, in which case everything goes bust, at least for a while).

[Micki]

Consider this possible scenario;

Buffets silver holding was closely the same as the amount needed to set up the Silver EFT.

Buffet did not buy the Silver until he know he had a buyer.
i.e. there was an agreement in place for the EFT to take over at a certain price. Barclays (Silver EFT) cannot invest such amount until EFT has approval to go ahead.

Buffet is happy as he gets a low risk deal with reasonable profit. Silver is bought over a longer period of time without stirring up prices.
Barclays (Silver EFT) pays Buffet a premium but far from the amount they would have paid if they had gone on the market to get the required 130M ounces for the EFT set up.

Perhaps Buffet now would like to see a drop in price so he can get in again?

[advancedatheist]

Gold reached over $696 this morning. I guess Buffett can't talk down the price of that commodity, either. Talk about an over-rated investment authority.