Buffett's Apha-Intense Macro-Cool Strategy

[damianolive]

“If the stock is cheap, we will buy it,” he said. “If it isn’t cheap, we won’t buy it.”

 

And he expects to get rich with this? Some people don't know jack about this business.

 

http://www.bloomberg.com/news/print/2011-09-30/berkshire-bought-4-billion-in-common-stock-during-third-quarter.html

[Valuebo]

 

I think it's laughable that many "professional" commentators think that with this buyback program, Buffett is effectively saying there are no bargains in the market. Didn't he buy for $3.6b in stocks in the 2nd quarter, invest $5b in BAC and buy Lubrizol at a decent premium from it's market quotation? That's almost $20b right there, more than 10% of Berkshire's current market cap, that he invested mostly when prices where higher than today. There is absolutely no logic in what they are saying. This announcement doesn't even mean they HAVE to buy back anything, it just provides the opportunity.

 

 

 

Ding ding, berkshire has probably made over $21-23b in pure investments so far this year and we have another quarter to go. "Buffett sees no bargains", yeah right.