Monday, March 9, 2009

Warren Buffett has lost his credibility on investing and politics; CNBC interview uneventful and sad

Billionaire Warren Buffett scrambled this morning to explain his gross inconsistencies in his financial and political advice to the nation, showing how much credibility he has lost to influence political opinion and investor action.

Buffett told investors last September to get back into the stock market, even though he didn't tell us that he gets to invest in preferred stock with guaranteed dividends while the rest of us have to go with the common stock that's on a roller coaster.

I didn't follow his advice.

Buffett was trotted out repeatedly as Barack Obama's adviser on the economy during the presidential race. Now Buffett says he does not regularly communicate with Obama. Still, he defends the president's socialist policies to cover his own reputation.

I can't. Obama is destroying free market capitalism.

The Oracle of Omaha made himself a lot of money during the debauchery of the past two decades. But now that times are tough, he is no more of a visionary about how to invest than I am.

While he has billions to lose yet still enough arrogance to appear on CNBC as someone who knows what is going on, the rest of us don't. And if you followed his advice in September, you don't even a few dollars to lose.

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