This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Warren Buffett's Wealth More Consistent Than Words

Stocks in this article: BRK.B

Now in comments given to Buffett media pal Becky Quick of CNBC -- it often seems that Buffett has a freelance media staff of three, comprising Andrew Ross Sorkin of The New York Times, Becky Quick and Carol Loomis of Fortune -- Buffett has more or less proven that the less optimistic view of hiring is the true case.

Buffett responded to Quick's question about employment by saying, "Adding very few people.... The railroad will have added a fair number of people, because if you've come back 61%, you've come back from a fair amount unemployment. But if you take our carpet business, it fell from 13 million yards a week, we'll say, to seven million yards a week. And with that cost 6,500 jobs. We're back up to maybe nine million yards a week. But we haven't had to add yet. If we get to ten million, we'll start adding people. But it -- it's lagging and it'll continue to lag."

Beyond Warren Buffett's comments on Berkshire Hathaway adding workers, there was little in his comments to the famed meeting of the Wall Street titans known as the Montana Economic Development Summit that wouldn't be classified as the typical boilerplate optimism about the U.S. economy.

"I am a huge bull on this country.... We will not have a double-dip recession at all. I see our businesses coming back almost across the board," Warren Buffett is quoted by Bloomberg as saying at the Montana event.

In fact, Buffett ruled out a double-dip recession. There was no mincing of words from the the Berkshire Hathaway CEO in expressing his confidence: "We will not have a double-dip recession at all.... It's night and day from a year, year and a half ago."

Now we know why there won't be a double dip recession, based on Buffett's more recent comments to CNBC: we're still mired in the old recession.

"I think we're in a recession until real per capita GDP gets back to where it was -- before," Buffett said. "That is not the way the National Bureau of Economic Research measures it. But I will tell you that to any -- on any common sense definition, the average American is below where he was before, or his family, in terms of real income, GDP. We're still in a recession. And -- and we're not gonna be out of it for awhile, but we will get out of it."

2 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,776.67 +419.80 2.42%
S&P 500 2,053.09 +40.20 2.00%
NASDAQ 4,734.6570 +90.3450 1.95%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs