Sunday, May 03, 2009

What Has Happened To Buffet.......?

Sometimes it´s sad to see what has happened to former legends......The following quote is related to Wells Fargo....The same Wells Frago that without taxpayer bailouts ( $ 25 Billion Tarp, FDIC backed bonds, PPIP ), accounting changes ( markt to market ), changing of the taxcode after the Wachovia deal, a different attitude from government on banks ( "no more Lehman´s, too big to fail, no nationalisation" ) etc would have already been gone...... UPDATE: Let Warren Buffett Buy Wells Fargo from Mish

Manchmal tut es wirklich weh zu sehen was aus zumindest meiner Sicht nun ehemaligen Legenden geworden ist...... Das nachfolgende Zitat von Buffet bezieht sich auf eine seiner wichtigen Beteiligungen Wells Fargo..... Man könnte ihm verzeihen wenn nicht eben diese Beteiligung ohne die Hilfe des Steuerzahlers ( 25 Mrd $ TARP, FDIC garantierte Anleihen, und das kommende PPIP Programm, Bilanzierungsänderungen ( Markt-To-Market ), Änderung der Steuergesetzgebung um den Wachovia Deal durchzuziehen, der Regierungshaltung "Too Big Too Fail, No more Lehmans" usw. längst den Weg in die ewigen Jagdgründe gefunden hätte.... Update : Let Warren Buffett Buy Wells Fargo von Mish


Buffett says Wells Fargo to ride out credit crisis Reuters
Buffett said at Berkshire's annual meeting. Noting that Wells Fargo shares fell below $9 (6 pounds) each this year -- they bottomed at $7.80 on March 5 -- he added that at that lowered price, "If I had put all my net worth in one stock, that would be the stock."

Buffett attacks bank tests Reuters

Buffett said Wells Fargo ($ 20 ), U.S. Bancorp ( $18 ), and a third Berkshire holding, M&T Bank Corp ( $ 50 ), do not need more equity capital, and "we would buy stock in any of the three banks at present prices."

With the promise to pay back TARP ( see this "rant" via Naked Capitalism , only possible with a massive capital hike ) i think he will soon have a very good chance to show his confidence.....

Nachdem ja der CEO von Wells Fargo angekündigt hat sich von der "Last" des TARP-Dikates zu befreien ( siehe Naked Capitalism , nur mittels massiver Kapitalerhöhung möglich ) wird Buffet schon bald beweisen dürfen wie ernst er es mit seinen Behauptungen meint.....

I highly recommend to read What They Want to Know: Our Top Ten List for Warren Buffett from Jeff Matthews ( a real Buffet expert and still a fan ). Looks like i´m not the only one wondering what has changed in his investment style and his investment ethics.....

Ich empfehle eindringlich What They Want to Know: Our Top Ten List for Warren Buffett von Jeff Matthews ( einem langjährigen Buffetexperten und immer noch ein Fan ) zu lesen. Diese mehr als kritischen Fragen belegen das abseits des Hypes um Buffet immer mehr nicht mehr blindlings dem Anlagestil und Urteilsvermögen vom Orakel aus Omaha folgen..... Ich persönlich bin am meisten darüber enttäuscht das er neben seiner Rolle als Hauptaktionär bei Moody´s , den gigantischen Mrdpositionen in dem von Ihm gebrandmarkten Derivaten und jetzt den steuerfinanzierten Bailouts so langsam aber sich das Gespür dafür verloren hat was moralisch korrekt ist...... So hört er sich leider immer mehr wie ein ganz gewöhnlicher Wall Street Guy an der in erster Linie sein Portfolio hochzureden versucht.... Enttäuschend

Buffett, in his most recent letter to shareholders in February, said he supported the U.S. government actions, while predicting bailouts will cause “unwelcome aftereffects” including inflation.

Speaking of ethics & douple standards......

Das meinte ich mit dem moralischen Kompass und Doppelmoral........

Looks like im good company.....

Sieht ganz so aus als wenn ich in guter Gesellschaft bin.....

Option Armageddon

Is anyone else tired of Warren Buffett worship? At his shareholder meeting on Saturday, he “lambasted banks and insurance companies for their stupidity;” at the same time he praised the bank in which he owns a gigantic stake: Wells Fargo. Every other bank acted foolishly, but Wells really is different he argued. He dismissed the stress test and said everything at Wells is copacetic. Bullshit.

Without the government’s various rescue facilities to prop up house prices and bank balance sheets, Wells would have blown up months ago. Look at their portfolio of HELOCs and Alt A in particular and their exposure to California in general. Not to mention the rotten Wachovia assets they’re still carrying.

And what about Wells accounting gimmickry surrounding Q1 earnings? Among other things, Wells recognized a $2.8 billion after-tax profit just from the change in mark-to-market accounting. And, due to a separate accounting change, they counted over $6 billion of minority interests as tangible common equity, which is highly misleading. Buffett, quite rightly, has always railed against mgmt teams that play accounting games. But when it comes to his bank, it must be ok. OA believes that Warren Buffett was for many years a great investor, but we’re tired of the haiography.

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