Warren E. Buffett, the famed investor known for his enthusiasm for undervalued stocks and businesses, is feeling bullish these days about a traditionally staid investment: Treasury bills.What's not routinely admitted: the idle rich love them some idle instruments. Always have. Some do so for capital gains, others for the coupon. Some do only that.
But the steady interest rates offered by Treasury bills helped stabilize Mr. Buffett's empire during a year in which more than half of the nearly 200 businesses it operates saw their earnings drop. Berkshire Hathaway had net earnings last year of $90 billion, a decline from the more than $96 billion it generated a year earlier.Not so much of an Oracle, eh? Even Buffett admits, ever so quietly, that he's just as much a victim of Mr. Market as your average retail plunger. You can't outsmart Mr. Market. Buffett just has a big enough wallet that he can outlast any recession and still eat filet. If that's what he likes.
What neither the lamestream media nor Evangelical Reactionary Radical Retrograde Right Wingnuts will admit is that sovereign debt is just as important as money. For a growing economy, both must expand to meet their, somewhat different, purposes. The mantra from the Evangelical Reactionary Radical Retrograde Right Wingnuts that sovereign debt drives out private is horseshit and always has been. The Oracle of Omaha just showed that.
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