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Just an FYI, nobody seems to pick up on this. But in 08 when the market crashed. Mr.Buffet had large stakes in BAC and WFC. Mr. Buffet says that he always stud

Just an FYI, nobody seems to pick up on this. But in 08 when the market crashed. Mr.Buffet had large stakes in BAC and WFC. Mr. Buffet says that he always studies his purchases so forth and so on. Well in the summer of 08, it wasn't difficult to see the banks where in trouble. (I figured it out, and made $$) However, Mr. Buffett didn't, even know he always says that he does due diligence. Had the banks not been bailed out by the US GOV in Oct 08, (TARP, low interest rates) we would be having a different conversation about Uncle Warren right now, because his stakes in WFC & BAC would be zero. Josh Brown is a clickbait / SEO / yahoo groups shill for the market. I don't believe this type of article is of interest to Hacker News. If I want this crap, then I can just click over to cnbc or business insider?

MaysonL 12y ago
Of course, Buffett did also make a fair amount of money on his $5B purchase of Goldman Sachs preferred stock during the crisis – it paid 10% dividend for a few years, got bought back at a 10% premium last year, and he got a couple billion worth of GS stock by exercising the warrants he got given to sweeten the deal. Josh Brown works with Barry Ritholz, who's one of the more perspicacious commentators on the market around, so lumping him with cnbc and business insider is really a low blow.
- chad_strategic 12y ago
  You understand that Josh Brown is on CNBC right? That silly little half time report. http://www.cnbc.com/id/100831613 http://www.cnbc.com/id/100831613, I'm just going to leave that there for you. But don't worry he is reformed! Are you seeing how easy it is get lumped in with the CNBC crowd?
jannotti 12y ago
Not sure where I side in the larger debate, but on this point it's perfectly plausible that Buffett (correctly) guessed that the banks were safer than they might appear. He may have believed a bailout would be inevitable if things went badly for them.
diogenescynic 12y ago
Are you sure he owned Bank of America before the crash? I know he invested another $5 billion in Bank of America in 2011 and the stock jumped 25% overnight: http://dealbook.nytimes.com/2011/08/25/buffett-to-invest-5-billion-in-bank-of-america/ http://dealbook.nytimes.com/2011/08/25/buffett-to-invest-5-b... And also: >Buffett’s paper profit on the Bank of America warrants stands at about $5.7 billion. From: http://www.bloomberg.com/news/2014-05-04/bofa-forgiven-as-buffett-says-you-do-the-best-you-can-.html http://www.bloomberg.com/news/2014-05-04/bofa-forgiven-as-bu... Buffett's investment to BAC was seen as a vote of confidence and definitely helped keep the struggling company from declining further. I'm not sure where you're getting your facts from.
- chad_strategic 12y ago
  Page 15 --> http://www.berkshirehathaway.com/2008ar/2008ar.pdf http://www.berkshirehathaway.com/2008ar/2008ar.pdf It wasn't BAC, yes you where correct, It was AMEX, WFC and US BANK Corp. It's all listed right here. http://projects.propublica.org/bailout/list http://projects.propublica.org/bailout/list Buffetts investment in BAC is more inline with his buy companies when no one else will philosophy.
anonbanker 12y ago
Do you suppose Buffett just anticipated a bailout? I mean, I saw it coming in 2005 or so.
xenadu02 12y ago
There's always a meta game going on at Buffet's scale. Because he is so successful, his act of investing in the banks both before and after the crisis can be seen as a cost of doing business to ensure a healthy US and world economy, upon which his entire empire depends.
melvinmt 12y ago
This was Buffett's motivation on investing in 2008: http://www.nytimes.com/2008/10/17/opinion/17buffett.html http://www.nytimes.com/2008/10/17/opinion/17buffett.html

MaysonL 12y ago

Of course, Buffett did also make a fair amount of money on his $5B purchase of Goldman Sachs preferred stock during the crisis – it paid 10% dividend for a few years, got bought back at a 10% premium last year, and he got a couple billion worth of GS stock by exercising the warrants he got given to sweeten the deal. Josh Brown works with Barry Ritholz, who's one of the more perspicacious commentators on the market around, so lumping him with cnbc and business insider is really a low blow.

chad_strategic 12y ago
You understand that Josh Brown is on CNBC right? That silly little half time report. http://www.cnbc.com/id/100831613 http://www.cnbc.com/id/100831613, I'm just going to leave that there for you. But don't worry he is reformed! Are you seeing how easy it is get lumped in with the CNBC crowd?

jannotti 12y ago

Not sure where I side in the larger debate, but on this point it's perfectly plausible that Buffett (correctly) guessed that the banks were safer than they might appear. He may have believed a bailout would be inevitable if things went badly for them.

diogenescynic 12y ago

Are you sure he owned Bank of America before the crash? I know he invested another $5 billion in Bank of America in 2011 and the stock jumped 25% overnight: http://dealbook.nytimes.com/2011/08/25/buffett-to-invest-5-billion-in-bank-of-america/ http://dealbook.nytimes.com/2011/08/25/buffett-to-invest-5-b... And also: >Buffett’s paper profit on the Bank of America warrants stands at about $5.7 billion. From: http://www.bloomberg.com/news/2014-05-04/bofa-forgiven-as-buffett-says-you-do-the-best-you-can-.html http://www.bloomberg.com/news/2014-05-04/bofa-forgiven-as-bu... Buffett's investment to BAC was seen as a vote of confidence and definitely helped keep the struggling company from declining further. I'm not sure where you're getting your facts from.

chad_strategic 12y ago
Page 15 --> http://www.berkshirehathaway.com/2008ar/2008ar.pdf http://www.berkshirehathaway.com/2008ar/2008ar.pdf It wasn't BAC, yes you where correct, It was AMEX, WFC and US BANK Corp. It's all listed right here. http://projects.propublica.org/bailout/list http://projects.propublica.org/bailout/list Buffetts investment in BAC is more inline with his buy companies when no one else will philosophy.

anonbanker 12y ago

Do you suppose Buffett just anticipated a bailout? I mean, I saw it coming in 2005 or so.

xenadu02 12y ago

There's always a meta game going on at Buffet's scale. Because he is so successful, his act of investing in the banks both before and after the crisis can be seen as a cost of doing business to ensure a healthy US and world economy, upon which his entire empire depends.

melvinmt 12y ago

This was Buffett's motivation on investing in 2008: http://www.nytimes.com/2008/10/17/opinion/17buffett.html http://www.nytimes.com/2008/10/17/opinion/17buffett.html