

Buffett to invest $3B in GE - mhb
http://dealbook.blogs.nytimes.com/2008/10/01/buffett-to-invest-3-billion-in-ge/index.html?hp

======
timtrueman
Another lesson in "Why it's a great idea to keep capital around to invest
during the bad times" or "How to buy GE at a 42% discount" from Mr. Buffett.

~~~
kingkongrevenge
> How to buy GE at a 42% discount

GE is a consumer finance company. All this popular perception about windmills,
toasters, and jet engines is ignorant of the financial reality. I will go on
the record and say Buffet is WRONG. GE will perform badly in coming years.

A great indicator that the market is nowhere near bottom is how the peanut
gallery continues to pipe up around here that now is the time to buy. The time
to buy will be when no webtard would even consider recommending a buy.

~~~
condor
Chances are that you and buffet could both be right. Buffet is right in
getting a guaranteed 10% return on $3B dollars with a potential for upside
with his preferred stock, even if you are right in that GE common stock
performs badly in coming years. So long as GE is still in business/profitable,
Buffett is right.

I agree with your last point, I'd actually be curious how many of the vocal
"buyers" are actually throwing their money down and buying?

~~~
13ren
Buffett has said that he's looking for huge investments, and he's not as
worried about getting great returns. That's the problem with having so much
money to invest - he needs multi-billion dollar investments to make a dent,
and there just aren't that many around.

He's said that if he only had a million dollars, he could double it every
year, with investments in small, relatively unknown companies.

~~~
netcan
catch 22

------
steveblgh
Is anyone else here who thinks that the first rejection of the bailout plan
and the subsequent agreement was done on purpose to generate the stock market
fall, where insiders could snatch up valuable stock ?

------
drawkbox
This is how it is done, invest when there is blood everywhere and the
bandwagon investors or running for the hills. They will be back, specifically
to pay you.

------
adnam
"NHN": Not Hacker News.

Can these stories please move to somewhere more suitable?

<http://www.newmogul.com/>

------
quasimojo
the cult of buffett has become amusing. he would be the first one to point out
his own investing gaffs and blunders to his own cultists. he would be the
first to tell you not to idolize him because he periodically makes bad bets.
he's just an opportunist with a moderately good track record. i can't remember
a single year in which he was the best performing manager. he's simply being
doing pretty good for so long that he has accumulated a vast fortune.

~~~
jwilliams
_i can't remember a single year in which he was the best performing manager._

You actually nailed it with that statement - his performance is measured on
decades, not year to year.

~~~
kingkongrevenge
The funny thing about buffet is this aw-shucks wise old stock picker grandpa
image he has cultivated. He's a ruthless insider with somewhat unsavory
friends in the insurance business, with questionable accounting histories. The
dirty secret about berkshire is that it's predominantly an insurance company.

~~~
condor
its no dirty secret, google finance makes it pretty clear "Sector: Financial >
Industry: Insurance (Prop. & Casualty)". It's possible there's questionable
accounting in the history, but 30+ years into it, I'm surprised nothing
major's come up seeing how large and public a target he and berkshire are and
how many other accounting cheats have been netted.

~~~
kingkongrevenge
It kinda has come up a few times if you care to google. The thing is, I don't
think much ILLEGAL has gone on. Just ... questionable. Nothing strictly wrong
with that, but it sort of flies in the face of all the nauseating buffet
fawning.

Tax avoidance is almost the bread and butter of international property and
casualty. They help multi-nationals repatriate earnings in low tax countries.
Nothing ILLEGAL about that... just something the sycophants probably don't
realize.

