Saturday, February 28, 2009

The Oracle of Omaha finally takes blame for some reckless investment decisions he made in 2008; he caused a lot of Americans to lose lots of money

Warren Buffet has finally confessed that he was full of hot air last year in trying to turn back the decline in the stock market all by himself.

The Oracle of Omaha bragged to the American people that he was investing in the stock market. When people get fearful, it is time to get greedy, he boasted.

And he lost his pants but still has plenty clothing left.

The New York Times reports:

The renowned investor Warren E. Buffett chided himself and the business world at large in his annual letter to shareholders of his holding company on Saturday as he sifted through the wreckage of his worst year in four decades.

Mr. Buffett’s company, Berkshire Hathaway, reported a 62 percent drop in net income for 2008 and posted a decline in book value per share for only the second time since he took control in 1965. Shares of the company, which peaked in late 2007 at more than $148,000 apiece, closed Friday at $78,600.

With characteristic candor, Mr. Buffett, 78, took the blame for some of the declines, stating that he “did some dumb things,” lamenting in particular an ill-timed bet on oil and the purchase of shares in two Irish banks, which have fared poorly.

Most tragically for this nation, Buffet has been one of President Obama's closest economic advisers. And the president's budget displays the same brash, braggart Buffet way.

Buffet cost a lot of Americans a lot of money in keeping them in the market last fall or convincing them to get in, and he should apologize over and over. Supposed financial guru Dave Ramsey should do the same.

While the Oracle still has billions for investment, the average American household doesn't. They've lost more than half of the value in their 401ks and other accounts.

This guy loves to see himself on TV. He should now stay secluded in Omaha until he can show a profit.

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