My oh my, what a huge statement!
I wonder why some people want to write things like this!
(My oh my... KLCI long term target is 2000 points? Why did ICapital dump rm50 million of shares during the last quarter then?)
Anyway, Warren Buffet was the main feature last night and he had several interesting comments.
And yes, Warren Buffett do admits that this field (economics) is not his specialty!
- "This is not a field of specialty for me, but my general feeling is that the recession will be longer and deeper than most people think," Buffett said. "This will not be short and shallow.
"I think consumers are feeling gas and food prices," he added, "and not feeling they've got a lot of money for other things."
He was not immediately available for further comment. Known for his frugality, the 77-year-old Buffett has lived in the same 10-room Omaha, Nebraska, house for a half-century, despite being worth an estimated $62 billion.
On Wednesday, the U.S. Commerce Department is expected to say how fast the economy grew in the first quarter. Economists on average have projected that gross domestic product grew at an annualized 0.2 percent rate in the quarter.
Two quarters of declining GDP is a traditional indicator of recession. That last happened in 2001. Economists expect the U.S. Federal Reserve on Wednesday to cut a key lending rate for a seventh time beginning last September.
Berkshire is a $197 billion conglomerate best known for its insurance holdings, such as auto insurer Geico Corp, but it owns more than 70 businesses.
Many of those businesses are tied to the housing market, including Acme Brick Co, insulation maker Johns Manville, and the real estate brokerage HomeServices of America Inc.
Others depend on consumers to spend more on discretionary items, such as Ben Bridge Jeweler and Borsheims Fine Jewelry.
"In the retail businesses ... if anything, they've gotten a little worse," Buffett said. "Of course, things connected with housing, whether it's in brick or whether it's in carpet, those businesses have shown no uptick at all. Jewelry had a bad Christmas ... and it stayed that way."
Buffett sees no respite from the housing slump.
"I think this is going to be fairly long and fairly deep, but who knows," he said. ( source of article: here )
How now my dearest MooMooCow?
HI ZE MOOLA,
ReplyDeleteFROM THE CONTENT OF YOUR BLOG, I AM SORRY TO SAY THAT YOU ARE STILL VERY INEXPERIENCE TRADER. PLEASE VISIT MY WEBSITE AT www.winbursa.blogspot.com I HAVE SOMETHING ABOUT YOU THERE. YOU SHOULD HAVE LEARN THE ART TO INTERPRET AND UNDERSTAND WHY I CAPITAL MOTIVE.
EDMUND TAN
My Dearest Edmund,
ReplyDeleteMany thanks for your lovely link.
http://winbursa.blogspot.com/2008/04/ze-moola-vs-tan-teng-boo.html
This comment has been removed by the author.
ReplyDeletehttp://img3.freeimagehosting.net/image.php?4b91abe5bb.jpg
ReplyDeleteThis piece is dated 17/08/2007.
How?
What strategy is he deploying?
hi moola,
ReplyDeletei am just giving my honest opinion i hope i idont offended anybody, not only I CAP use dirty tactics, 99% of the fund companies does that. Remeber, 1 dollar they gain = 1 dollar u lost. thanks again for supporting my website-non profit website at www.winbursa.blogspot.com
Conflict of interest?
ReplyDeleteTaking on the role of a fund manager as well as an investment adviser?
Warren Buffet is a fund manager only, not an investment adviser. If one were to invest in Berkshire, you are on the same boat with him all the time.
What about having a dual role?
screw first then tell you or tell you first then screw?
in bull market it does make big difference in screwing first?
in bear market it does make big difference in ditching first?
Especially in big block.
What say you?
That iCap statement is itself a contradiction. A cheap publicity attempt or suffering from delusion of granduer.
ReplyDeleteThis is a gimmick the investing public has to be forewarned.
Dear All,
ReplyDeleteI am confused. Hope one of you experts can provide answers to clear my doubts:
1) since ICap had sold a huge chunk of its assets during the quarter, how come the "Investment" under the Balance Sheet of its latest quarter report still remain the same compared to the previous quarter?
2) since Warren Buffett have been so bearish on the US market, why is he still buying stocks himself? He has been doing so since the subprime meltdown. (The latest news is that he is buying a big chunk of Wrigley, the chewing gum maker) are you guys gonna categorise the most respected investor of all time as the same kind of "fund manager" as TTB?
Your kind reply will be highly appreciated.
Thanks and Regards,
Ernest
Dear Ernest,
ReplyDeleteLet's drop the 'experts' thingee. We all here to share our views.
1) since ICap had sold a huge chunk of its assets during the quarter, how come the "Investment" under the Balance Sheet of its latest quarter report still remain the same compared to the previous quarter?
=> Good question. Sales proceeds as stated in its earnings notes stated were 50.999 million. So why in their quarterly earnings, its revenue only states 30.367 million for the quarter. Why? I am as lost as you here. And as for your 'Investment' account figure, I too have no idea. But if you are a shareholder, I reckon you better need to get clarification from this company!
2) since Warren Buffett have been so bearish on the US market, why is he still buying stocks himself? He has been doing so since the subprime meltdown. (The latest news is that he is buying a big chunk of Wrigley, the chewing gum maker) are you guys gonna categorise the most respected investor of all time as the same kind of "fund manager" as TTB?
=> Hm.. not understanding why Warren Buffett being dragged into this?
Incredible.
Are you drawing comparison between what Mr.Tan did and what Buffett is doing?
If you ask me, Mr.Tan should be judged based on what he did. Just because someone else is doing should never be used as an excuse.
Now, Buffett.
Firstly, Buffett is helping Mars in purchasing Wrigley. Berkshire is helping as a financier, a lender (4 billion if not mistaken), while buying a US$2 billion stake in the company.
But the point is this is a typical Buffett's stock purchase. It has been noted for way too long about his liking on Wrigley and this is a typical investment which he understands.
Buffett's commentary on the recession has well being noted for many months already.
Do see http://whereiszemoola.blogspot.com/2008/03/warren-buffet-mania.html and click on the first link, http://www.cnbc.com/id/23446988
Let me copy and paste exactly what he said.
---------------
In a series of exclusive live appearances on CNBC's Squawk Box this morning, Warren Buffett told us that by a "common sense definition", the U.S. economy is already in a recession, even if it hasn't met the technical definition of two consecutive quarters of negative growth.
He's been saying for several months that the U.S. could easily fall into a recession.
He restated, however, his view that over the long-run the U.S. economy will do fine and that each generation will live better than the one before it. Buffett also said current conditions are "nothing like" the downturn of 1973 and 1974, although he can't rule out the possibility that things will get worse.
Buffett noted that Federal Reserve Chairman Ben Bernanke has a tough "balancing act" and risks reigniting inflation with a series of rate cuts by the central bank.
Buffett also told CNBC's Becky Quick that while stocks are "not cheap" now, they're not extreme, either. He says he's waiting for when stocks become "very cheap." He does, however, "find more things to look at now than I did six months or a year ago." The best opportunities he sees right now are in bonds rather than stocks.
...... see end of page ....
Buffett also repeated his long-held view that the U.S. dollar will continue to get weaker for as long as the nation maintains a large current account deficit.
In response to a question from Joe Kernen about why he bought stakes in the drug companies Glaxo GlaxoSmithKline and Sanofi-Aventis Sanofi-Aventis, Buffett said pharmaceuticals are one area where he doesn't usually try to predict how individual companies will do in the future. He acknowledged that he might end up with a stake in a domestic drug company, especially since they make a lot of their money overseas, getting a boost from the weak U.S. dollar.
--------------
And in that same interview: http://www.cnbc.com/id/23445235
7:21 AM
Buffett says he's finding more opportunities right now in the fixed income market than in the stock market, although there are opportunities in both.
:23 AM
Joe asks if Buffett is more negative now than has been in a few years. Buffett replies that over time, everything will be OK. Everyone's children will live better in the future than their parents live now. The U.S. still has a market system and a metitocracy and will continue to do well.
---------------
I could go on and on...
but the thing is.... despite stating that he reckons the US is IN recession, he has noted that there are still opportunities in the stock market.
And yes everyone knows that Warren Buffett and Berkshire has been buying shares.
How?
Do you see anything contradictory in what Buffett is doing?
Last but not least, I do not see where and when Buffett specifically said that he's bearish on the US Markets.
rgds