This Day On The Street
Continue to site
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

Warren Buffett's Wealth More Consistent Than Words

Buffett gets a lot of heat from the financial press that aren't in love -- or in awe -- of him, for being a hypocrite on the issue of derivatives, or over his investment in Goldman Sachs while he berates investment banking as an occupation. However, in this case, Warren Buffett has spoken the words himself that indicate why investors shouldn't pay attention to each and every word, from the bold the the hesitantly bold to the equivocating words, that he issues on the U.S. economy.

Remember when Warren Buffett was called to testify before the federal government's Financial Crisis Inquiry Commission (FCIC) back in June? Buffett refused to come forward voluntarily, and the feds had to issue a subpoena to get the Berkshire Hathaway chief to show up and provide testimony on the issue of the rating agencies.

Warren Buffett said the feds were wasting his time, and he had nothing worthwhile to offer on the subject of the rating agencies and the financial crisis. Yet when the FCIC began to interrogate Warren Buffett, the Oracle of Omaha kept coming back to one idea. It was clear pretty quickly in his testimony that Buffett was using the old public relations maxim of "answering the question you wanted them to ask, not the one they asked" and that he had a sound bite or two from which he wasn't going to wander away.

Over and over again, Warren Buffett made the point that even the smartest people in the world can't predict a financial crisis, and it's a fool's game to even discuss the subject of a financial crisis and why or how it happens. The Berkshire Hathaway chief went so far as to invoke Sir Isaac Newton in his financial bubble evasions before the FCIC. Buffett noted several times that Sir Isaac Newton invested in bubbles.

The logical conclusion of Buffett's testimony was that any attempt to predict financial downturns are pointless, and anyone who thinks it's a good idea to trust the smartest people in the world for advice on investing are making a mistake, as the best and brightest are still among the ranks of the fallible institution known as humanity.

Sure, it was humble Warren Buffett, no surprise there. The man who is the second-richest in America, but was simply a lucky winner in the "ovarian lottery," thinks the humble way to go is to say it's beyond any individual's ability to opine on such intricate forces as the market's ability to take a turn for the worse beyond our ability to see coming.
3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.33 -0.98%
FB $119.14 1.10%
GOOG $708.07 0.95%
TSLA $215.40 1.80%
YHOO $37.05 0.30%


Chart of I:DJI
DOW 17,679.20 +18.49 0.10%
S&P 500 2,044.85 -5.78 -0.28%
NASDAQ 4,695.1520 -21.9420 -0.47%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs