Who made Buffett write an article in the The New York Times that he is buying US stocks?

He is known as the Oracle of Omaha.

He is known as the best investor of our time.

He has a buy and hold approach.

He buys stocks on the cheap.

He moves markets and stocks with his comments.

He bought for 5 billion dollars of "perpetual preferred stock" in GOLDMAN SACHS (Secretary of Treasury, Paulson's former company...) that yields a 10% dividend.

He bought for 3 billion dollars of "perpetual preferred stock" in General Electric that yields a 10% dividend. General Electric can pay him that money back (+3 years worth of dividends)+ a 10% fine after 3 years.

So he is not really buying the pure stock, he is buying something similar to a bond with a call option.

IF he was buying stocks WHY would he let everyone know?

Something doesn't make sense.

The billionaire next door

August 2007


Berkshire annual meeting 2007

Quote of the day

"If you can find another illustration of a company whose stock that's gone down by 95% in one year and is still rated triple-A, I have yet to see it"

- Warren Buffet, speaking about bond insurers Ambac and MBIA retaining their AAA ratings, May 2008

Quote of the day

"It's sort of a little poetic justice in that the people that brewed this toxic Kool-Aid found themselves drinking a lot of it in the end"

- Warren Buffett, February 2008