Monday, August 29, 2011

Lucky Warren Buffett

When he bought his Goldman Sachs stake, within days the government rushed in with more money. Just days after Buffet puts $5 billion into Bank of America, B of A has announced it will raise an additional $8 billion by selling its stake in China Construction Bank. B of A is up nearly 4% on the news.

If I didn't know better, I would say Buffett trades on inside information.


  1. In the GS deal, BRK was paid lavishly for its endorsement of GS just as GS was raising capital through a public offering. In the BAC deal, it would not have been inappropriate for BAC to disclose plans to sell CCB to Buffett. Buffett was not buying an asset that other investors could have bought, so there's no unfair advantage here. Does BRK benefit from its position? Of course. Unfairly or illegally? Not at all.

    If I didn't know better, I'd say you're a reactionary with an agenda.

  2. I thought insider trading was illegal, immoral and unethical?

    Oh wait, that's only if it's someone outside the power center. Silly me!

  3. "...trades on inside news"


  4. I don't know better and I think the man is a fraud.

  5. does it really matter? he's giving all the money away anyway.

  6. Dear All,

    Berkshire is an insurance company and before the crisis was short puts. The crisis came and they were literally broken. When China stopped buying treasury's he entered in to give a message to the other Oligarchs like him. He is The insider trader and that is the reason why he was bailed out... silently ... and the reason why nobody comments... and why he got an investment medal from the president... and why he could have 20% of Moody's with senate accepting his answers ... he is a living proof that the system is totally manipulated and corrupted ... on its rooths, I am sorry to put it this way. There is no Meritocracy in it: it is an Oligarchy. Period.

    That is Life,