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View Full Version : Buffett purchases $23 billion in industrials, commercial others




nejar462
11-08-2011, 08:53 AM
I've always been perplexed as to why a man sired by Howard Graham Buffett and with the amount of business and investment knowledge as Warren Buffett would be crazy enough to believe in ludicrous socialist polices and support them so openly. I've always felt he might be being secretly bullied by the less than scrupulous powers that be to withhold his true opinions, which would probably fall in line more with the Ron Paul/Howard Buffett philosophy than what he is saying publicly.

Nevertheless, this move seems to be prudent, he is liquidating his treasury holdings and getting into industrial and commercial enterprises, which I think will be better situated to survive the upcoming dollar collapse than financial and consumer products. While Buffett has basically called inflation the only sure thing for the next upcoming years, this big move seems to indicate he thinks there will be a dollar collapse relatively soon, as he is ditching treasuries and jumping into industrials. If he thought simply stocks would move up, I'd think he'd move from treasuries into financial and consumer products, as those are more along the lines of his past investments. He still has 50 billion in cash, but has a similar amount in debt, balancing it out. He also made these purchases without revealing what they are in SEC filings, ostensibly to prevent copy cat investing but I think he might actually be trying to hide the fact he sees whats coming up, and its not pretty.

jason43
11-08-2011, 10:49 AM
He also bought $5 Billion in Bank of America stock. I'm really not sure what he is thinking, but he tends to not make large mistakes judging on his track record.

He had a story called Squanderville and Thriftville years ago and bought a lot of silver, but thought he got it wrong and sold off his silver holdings. I think he got it right and just figured it out too early...

Cowlesy
11-08-2011, 10:57 AM
He couldn't have played the timing on those moves any better. Back in July he was saying that the latter half of the year would be good, and then when the market dipped, he stuck with that thesis and pulled the trigger.

When it was headed toward 10,000, I *almost* stopped contributing to the 401(K), but I held my nose. Those contributions at the end of September and beginning of October are as of yesterday up between 10% and 20%. I find when I get to the point when I start to say screw it, is precisely the time I shouldn't. And sure enough, it worked.

lx43
11-08-2011, 01:32 PM
His first wife Susie is the one I believe that helped to change his view. Of course I could be wrong.