Saturday, September 24, 2011

Warren Buffet 6 billions strategy ?

Follow up on a concern if Warren Buffet's era may come to an end soon posted in August 2011, the figures are now out and considered as 'correct' as calculated by Forbes ...

Steven who works in Forbes has calculated that Warren Buffet is officially the BIGGEST MONEY LOSER, at an amount of USD 6 billions.  But this is not the first time Warren Buffet going through this kind of challenge.  He has always come back up stronger for the past 8 times but can he makes it again this round ?

There are 2 key distinct differences in his challenges today.

  1. His age : Warren has come to a stage that he would give everything he has, back to the country or people he loves truly.  Business ( Berkshire Hathaway ) is surely something he hold on to very strongly but NOT necessary to all the investors themselves.  If one day he realizes 'most' of the investors in his business is no longer 'his investors' like last time, he may just pull the plug.  After all, as far as his business is concerned, a successor plan is already in place.
  2. When USA gets into trouble by its own doing in the past, everyone forgive him because he is the  ONLY entity who can fix the situation.  There were NO ONE ELSE we could keep our hopes on except USA itself.  Hence, we always go back and work with USA politely.  Today, although still without an apparent replacement for such a giant over the centuries ... but there are clear candidates for many to put their hopes onto.  Hence, almost no one is expecting USA to fix anything today, not even their own citizen.  This ... is also something that hasn't happen in the past, at least not to this scale.

Having said all that, my bet is that Warren will come back up stronger than ever because
  1. Today's indicators shows that whoever already in the market and want to continue to stay in the market would need a staying power of about 1.5 years.  BH has no problem with this requirement because of their low operation cost.
  2. Warren doesn't really love anyone else more than BH.  But as indicated above, Warren doesn't love his investors as much as he used to, simply because his today's investors are rather different now.
  3. Warren needed a good bye event . . . well, to say good bye.  And this is NOT it !


Kris said...

Sometimes, it is good to quit while ahead to preserve and safeguard your legacy for future generations.

Jaga muka mah...something like George Soros. or any other professional, retire your career win at last WINNING match!! Not when you are losing.

Michael Tsen said...

indeed ... then again sometimes I really admire those who were forced out in a losing game and yet able to stand tall and get back on their feet in no time admitting what they have learned.