Buffett's latest article, titled, "Pretty Good for Government Work," defends and offers praise to the U.S. government for its efforts aimed at solving the financial crisis. Using his classic down-home charm, Buffett structured the piece as a letter written to Uncle Sam, signed by grateful nephew, Warren.
In the piece, Buffett explains that, while, "often clumsy, even inept," the government's quick thinking and actions during the chaotic closing months of 2008, while controversial, ultimately saved corporate America and U.S. citizens from tumbling in a domino-like fashion.
Specifically, he gives credit to a number of individuals who directed the efforts. Ben Bernanke, Hank Paulson, Tim Geithner, Sheila Bair and George W. Bush are all commended for their courage to take action.The optimistic nature of Buffett's piece is not unusual. Even at the height of the global economic crisis, Buffett maintained his faith in the U.S. economy. This is highlighted in another, op-ed piece penned by the investor, "Buy America. I Am." In his now famous article, Buffett explained that the global economic turmoil was not a signal of doom and gloom but rather a prime investing opportunity. Putting his money where his mouth is, the investor has made a number of purchases since then including the largest purchase in Berkshire Hathaway's (BRK.A) history, Burlington Northern Santa Fe Railroad. This bet, Buffett explained, would benefit Berkshire Hathaway long after he was gone. This is not the first time Buffett has offered up praise for the government's controversial decision to step in and save the financial industry either. As he explained in this week's article and also in the past, Buffett believes that the government's decision to step in and inject hundreds of billions of dollars into the economy was necessary at the time, and saved the U.S. and the rest of the global economy from suffering a far more painful blow. Buffett's gratitude also likely stems from his personal benefits resulting from the government's actions during those bleak times. As he highlights early on in his op-ed piece, his company was included among those dominos on the verge of falling.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV