The fourth LwH Prize goes to… Warren Buffett

Hobbes, we just have to look at my friend Warren Buffett (and I deliberately say my friend because this man must have the longest list of friends, as any time I listen to some US senator, politician or financial pundit, everyone calls him “my friend”), he’s been talking about overpriced markets for years, but he’s making the killing now. FT.com’s Alphaville reported on Sept 24th:

Goldman said late Tuesday that Buffett’s Berkshire Hathaway had reached an agreement to buy $5bn of preferred stock in a private placement and to receive warrants enabling it to purchase another $5bn of common stock. […] Under the agreement, the preferred stock will pay Berkshire a dividend of 10%. Although Goldman can buy it back at any time, it would have to pay Berkshire a 10% premium to do so.

It seems to me that Mr Buffett is packing up and getting ready to leave public life. He’s passed on his fortune to another friend of ours (Warren and myself’s), Bill Gates and his foundation. That’s as much as philanthropy and money can do.

You can fool some of the people all of the time, and all of the people some of the time, but you cannot foolpeople all of the time. They put these words in Abraham Lincoln’s lips, and Buffett seems to have tried to use his massive market influence to help the financial system while having Berkshire’s shareholders in mind all along. Giving back to society once again.

You deserve it Warren. The fourth LwH is yours.

.calvin

PS. However, I do wonder what will happen to Berkshire’s stock once he stops playing the ukulele.

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