Kass: Buffett Veers Off His Investment Path

"He hits from both sides of the plate. He's amphibious."

-- Yogi Berra

I also recently highlighted why I thought that Buffett was not only a great investor but, in recent years, he had become an even better marketer, with the benefit of his image accruing to Berkshire. For example, he has cultivated an image of someone who started with nothing, even though he was the son of a well-to-do stockbroker who became a U.S. Congressman. Everyone thinks of him as America's Business Grandpa, but remember, he grabbed control of a textile firm and promised not to change anything. He did make changes, though, eventually using the textile company's cash flow for acquisitions, shutting down the factory over time.

In essence, Buffett has sold himself as a savior, or investor of last (or often first!) resort. As such, he has positioned himself to prosper in the form of getting beneficial terms in acquisitions, a positive but still a "marketing" technique. As an example, Berkshire contributed over $4 billion of subordinated debt in the recent Mars deal. But what didn't get much press -- and it should have! -- was that on top of the debt, Berkshire invested over $2 billion of equity in the Wrigley (WWY Quote)/Mars transaction at a "discount" to the price that Mars eventually will pay for Wrigley's common shares.

I am staying short Berkshire Hathaway.

"The future isn't what it used to be."

-- Yogi Berra

Enough said.

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Doug Kass is the author of The Edge, a blog on RealMoney Silver that features real-time shorting opportunities on the market.