Tag Archives: Warren Buffett

Warren Buffett – “America’s best days lie ahead”

From time to time I post comments from Warren Buffett.  I find his perspectives interesting,  notable, and very unique, although in many cases I (at least) partially disagree with his thoughts.

His latest “Chairman’s Letter” in the Berkshire Hathaway 2010 Annual Report contained some interesting comments regarding the American economy, both past and future.  Here are the excerpts I found most notable:

“Money will always flow toward opportunity, and there is an abundance of that in America.  Commentators today often talk of “great uncertainty.” But think back, for example, to December 6, 1941, October 18, 1987 and September 10, 2001. No matter how serene today may be, tomorrow is always uncertain.

Don’t let that reality spook you. Throughout my lifetime, politicians and pundits have constantly moaned about terrifying problems facing America. Yet our citizens now live an astonishing six times better than when I was born. The prophets of doom have overlooked the all-important factor that is certain: Human potential is far from exhausted, and the American system for unleashing that potential – a system that has worked wonders for over two centuries despite frequent interruptions for recessions and even a Civil War – remains alive and effective.

We are not natively smarter than we were when our country was founded nor do we work harder. But look around you and see a world beyond the dreams of any colonial citizen. Now, as in 1776, 1861, 1932 and 1941, America’s best days lie ahead.”

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A Special Note concerning our economic situation is found here

SPX at 1321.82 as this post is written

Stock Market Capitalization As A % Of GDP

Recent statistics indicate that the stock market capitalization as a percentage of GDP appears to again be over 100%.

This is an elevated level from a historical perspective.

I’ve written of this metric before in an article titled “Does Warren Buffett’s Market Metric Still Apply?”

I feel that for many reasons this is an important gauge of stock market valuations.

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SPX at 1180.01 as this post is written

Warren Buffett – Recent Interview

Here are a couple of links to a recent Warren Buffett interview.  I have not been able to pinpoint a date, but apparently the interview was from a month or so ago:

The video link:

http://pymnts.com/warren-buffett-on-what-s-next-in-the-payments-industry-2

The transcript link:

The first part of the interview deals with his views on the economy.   Although I don’t necessarily agree with his views, I did find the interview to be interesting on various fronts.

 

SPX at 1087.14 as this post is written

Warren Buffett’s July 9 Interviews

I Warren Buffett’s July 9th interview on CNBC

http://www.cnbc.com/id/31836625/

 to be interesting, especially when he says:

“And it’s very important the economy gets, comes back.  It will come back.  Government has less influence on how fast that happens than a lot of people would like to hope that it would.  But government is a player, but it has no silver bullet.  The economy will come back, though.”

Here’s another interview from July 9:

http://www.cnbc.com/id/31831401

In this interview I found this comment, where he is discussing the economy, to be interesting:

“I want to emphasize we’re going to come out of this better than ever. I mean, the best days of America, by far, lay ahead. But not next week or next month. I don’t know exactly when we’ll come out. But we will come out big time.”

It would have been very interesting for him to have elaborated upon the above statement.  For instance, what factor(s) does he think will be the main economic drivers?

SPX at 879.13 as this post is written

 

Copyright 2009 by Ted Kavadas

Warren Buffett June 24 Interview

I found this Warren Buffett interview to be interesting, particularly when he says this:

 

BECKYThe last time we sat down to talk to you was on May 4, and at that point you told us that you think we’re in an economic war right now.  How much progress do you think we’ve made in that war?

BUFFETT:  Well, it’s been pretty flat.  I get figures on 70-odd businesses, a lot of them daily.  Everything that I see about the economy is that we’ve had no bounce.  The financial system was really where the crisis was last September and October, and that’s been surmounted and that’s enormously important.   But in terms of the economy coming back, it takes a while.  There were a lot of excesses to be wrung out and that process is still underway and it looks to me like it will be underway for quite a while.  In the (Berkshire Hathaway) annual report, I said the economy would be in a shambles this year and probably well beyond.  I’m afraid that’s true.

http://www.cnbc.com/id/31526815/

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As an aside, for those interested I wrote an article a few months ago titled “Does Warren Buffett’s Market Metric Still Apply?” It discusses several issues that may be of interest to followers of Buffett, as well as investors in general.  It can be found under the “Investor” heading here:

https://www.economicgreenfield.com/prosperitybypencom-directory/

SPX at 920.26 as this post is written