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Dominoes
Joined: 15 Oct 2005
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Location: Tejas State, Mexico
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 Posted: Wed Nov 04, 2009 5:53 pm Post subject: Buffett's big bet: $34B on 2nd-largest railroad |
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Buffet launches huge pump-and-dump operations on the markets. He's old and cashing out.
| Quote: | | NEW YORK (AP) -- The biggest name in investing is making what he calls an "all-in wager" on the U.S. economy -- $34 billion to own a railroad that hauls everything from corn to cars across the country. |
Yahoo
The lemmings are already lining up to get fleeced.
Now You Can Own Berkshire Stock for Just $65.30
| Quote: | Buffett's decision to conduct a 50-for-1 split of Class B shares of his Berkshire Hathaway lowers the price of entry for ordinary investors who long found it prohibitively costly to buy the stock.
* Poll: Would You Buy Berkshire Stock?
The split is one piece of Berkshire's $26 billion takeover of Burlington Northern Santa Fe, and is intended to make it easier for shareholders of the railroad who want to swap their shares for Berkshire stock to do so.
Berkshire Class B shares
Berkshire Hathaway Inc Class B Stock
BRK.B
3382.99 UNCH 0
NYSE
Quote | Chart | News | Profile
[BRK.B 3382.99 --- UNCH (0) ] closed Monday at $3,265. After a 50-for-1 split, they would cost just $65.30.
Class A shares
Berkshire Hathaway Inc Class A Stock
BRK.A
101600.00 UNCH 0
NYSE
Quote | Chart | News | Profile
[BRK.A 101600.00 --- UNCH (0) ] of Berkshire trade around 30 times the price of the Class B shares, or around $100,000, and are not being split.
The split requires approval of Berkshire shareholders. |
LOL ... All those years of polishing his phoney 'Good Guy' image is going to pay off hugely. His personality cult has literally millions of delusional worshippers.
He's not waiting around for the other shoe to drop on the economy.
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zigzag
Joined: 07 Oct 2005
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| Posted: Wed Nov 04, 2009 7:03 pm Post subject: |
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He was sitting on too much cash so bought something of value with it before it became worthless paper.
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Last edited by zigzag on Wed Nov 04, 2009 7:42 pm; edited 1 time in total |
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Dominoes
Joined: 15 Oct 2005
Posts: 1201
Location: Tejas State, Mexico
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| Posted: Wed Nov 04, 2009 7:25 pm Post subject: |
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He's sitting on a lot of gold and bank assets, including foreign exchange ops through his banks. He unloaded dollars a long time ago.
He's covered so many ways it's impossible for him to lose money. He's been buying political protection for years. Not only is he going to fleece the 'global economy', he'll even cash in by floating the water through his own brokerages, like Goldman Sachs, raking it in from all sides of the deals, on buying and selling commissions. He's got the perfect scam set up.
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EnSoledad
Joined: 09 Oct 2005
Posts: 1283
Location: homeless with a fuel card
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| Posted: Wed Nov 04, 2009 8:23 pm Post subject: Re: Buffett's big bet: $34B on 2nd-largest railroad |
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| Dominoes wrote: | The split is one piece of Berkshire's $26 billion takeover of Burlington Northern Santa Fe, and is intended to make it easier for shareholders of the railroad who want to swap their shares for Berkshire stock to do so.
LOL ... All those years of polishing his phoney 'Good Guy' image is going to pay off hugely. His personality cult has literally millions of delusional worshippers.
He's not waiting around for the other shoe to drop on the economy. |
I don't really see what the scam is here.
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Dominoes
Joined: 15 Oct 2005
Posts: 1201
Location: Tejas State, Mexico
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| Posted: Thu Nov 05, 2009 4:43 am Post subject: |
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The scam is the stocks are essentially worthless; it they weren't, he wouldn't be selling them off. As for the rail stocks, if they were worth what 'the market' values them at, he wouldn't be floating water to buy them with; he's hoping to pump up the market based on his name, and then dump his holdings at the top and bail.
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zigzag
Joined: 07 Oct 2005
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| Posted: Thu Nov 05, 2009 8:08 am Post subject: |
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| Dominoes wrote: | | The scam is the stocks are essentially worthless; it they weren't, he wouldn't be selling them off. As for the rail stocks, if they were worth what 'the market' values them at, he wouldn't be floating water to buy them with; he's hoping to pump up the market based on his name, and then dump his holdings at the top and bail. |
you are becoming a conspriacy nut 
Buffet isn't selling anything off besides what he is donating to the Gates Foundation and berkshire hathaway is so cash rich it doesn't have to float anything, just pay cash.
At best he figures inflation is coming so getting out of cash and into revenue producing assets like railroads for the cash flow and pricing power railroads have to keep up with inflation.
No different than somebody taking something like $100,000 sitting in the bank and buying a 3 family house to rent out, it beats watching the value of the cash dive do to inflation and if they can raise the rents as inflation hits they will make a nice return on their investment.
The new hot potato is US dollars.
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Lars
Joined: 11 Feb 2007
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Location: Cocoa Beach, FL
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| Posted: Fri Nov 06, 2009 7:09 am Post subject: |
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Warren Buffet has made more money than some delusional truck drivers can even add up and will continue to do so.
I guess when you can't afford NetJets, you have to complain about something and the less you know about it, the easier it is. |
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Dominoes
Joined: 15 Oct 2005
Posts: 1201
Location: Tejas State, Mexico
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| Posted: Fri Nov 06, 2009 2:14 pm Post subject: |
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| zigzag wrote: |
you are becoming a conspriacy nut |
Says the guy who quotes sites like 'EconomyInCrisis' and is busy plotting the deaths of all school teachers and Baby Boomers.
| Quote: | Buffet isn't selling anything off besides what he is donating to the Gates Foundation and berkshire hathaway is so cash rich it doesn't have to float anything, just pay cash.
At best he figures inflation is coming so getting out of cash and into revenue producing assets like railroads for the cash flow and pricing power railroads have to keep up with inflation. |
If he's sitting on so much cash he be using that and wouldn't be floating a bunch of watered Berkshire lottery tickets to finance the deal.
He stands to make his money on all sides of the deal, already owning not only the railroad stocks but the brokerages that will be floating the issues; whether the Fed 'approves' the deals or not he makes a huge score off of the deals no mater what; his risk is zero. The Funds and the speculators and bookies and touts will drive the crap up without him lifting a finger. It's no 'conspiracy theory', he positioned himself perfectly, political grease and all.
| Quote: | | The new hot potato is US dollars. |
Buffet was out of dollars somewhere in Bush's first term, like most people with any sense were.
Buffet made his money the old fashioned way, by starting out buying politicians and continuing to do so for decades, just like Perot and the majority of so-called 'self made men'; it's no big secret, except to mushrooms and morons like Lars. Insurance and real estate, along with lawyers have virtually always backed the 'Democratic' wing of the one party system , particularly in national elections, with a few variations depending on local politics, which is no big secret either. Like most insurance peddlers, Buffet has always been aligned with politicos from the beginning of his career. There is a bio of him out, not an objective one but it's easy enough to figure out.
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Dominoes
Joined: 15 Oct 2005
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| Posted: Fri Nov 06, 2009 2:20 pm Post subject: |
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| Lars wrote: | Warren Buffet has made more money than some delusional truck drivers can even add up and will continue to do so.
I guess when you can't afford NetJets, you have to complain about something and the less you know about it, the easier it is. |
Reading your 'predictions' and general incoherent 'economic' opinions, among others, is why I was convinced gold was the way to go a long time ago.
Some of us can afford to live far enough away from any McMansion ghetto that 'NetJets' aren't available, nor or are we stupid enough to pay what they charge for crappy satellite service, not to mention we aren't impressed with crap like 'YouTube' and can afford to buy CD's and real stereo systems rather than spend hours screwing around with MP3's and Butt Berrys et al.
You need to stick to bullshitting truck drivers about how valuable your apartment in that cow pasture is; most of them will buy that hilarious nonsense.
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Lars
Joined: 11 Feb 2007
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| Posted: Fri Nov 06, 2009 5:40 pm Post subject: |
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The world left you behind a long time ago, Dimwit, but instead of trying to catch up, you just pretend it didn't happen.
I do have some doubt that anything I wrote would influence any investments you may make, but if it did, I would suggest that you buy more gold.
Right now, but you might want to wait a few days. Later....who knows? |
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zigzag
Joined: 07 Oct 2005
Posts: 6577
Location: not in a truck
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| Posted: Fri Nov 06, 2009 6:33 pm Post subject: |
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| Dominoes wrote: | | zigzag wrote: |
you are becoming a conspriacy nut |
Says the guy who quotes sites like 'EconomyInCrisis' and is busy plotting the deaths of all school teachers and Baby Boomers.
| Quote: | Buffet isn't selling anything off besides what he is donating to the Gates Foundation and berkshire hathaway is so cash rich it doesn't have to float anything, just pay cash.
At best he figures inflation is coming so getting out of cash and into revenue producing assets like railroads for the cash flow and pricing power railroads have to keep up with inflation. |
If he's sitting on so much cash he be using that and wouldn't be floating a bunch of watered Berkshire lottery tickets to finance the deal.
He stands to make his money on all sides of the deal, already owning not only the railroad stocks but the brokerages that will be floating the issues; whether the Fed 'approves' the deals or not he makes a huge score off of the deals no mater what; his risk is zero. The Funds and the speculators and bookies and touts will drive the crap up without him lifting a finger. It's no 'conspiracy theory', he positioned himself perfectly, political grease and all.
| Quote: | | The new hot potato is US dollars. |
Buffet was out of dollars somewhere in Bush's first term, like most people with any sense were.
Buffet made his money the old fashioned way, by starting out buying politicians and continuing to do so for decades, just like Perot and the majority of so-called 'self made men'; it's no big secret, except to mushrooms and morons like Lars. Insurance and real estate, along with lawyers have virtually always backed the 'Democratic' wing of the one party system , particularly in national elections, with a few variations depending on local politics, which is no big secret either. Like most insurance peddlers, Buffet has always been aligned with politicos from the beginning of his career. There is a bio of him out, not an objective one but it's easy enough to figure out. |
his father was a congressman
a 50 for 1 stock split only means people who own a few shares of Burlington can choose either to be bought out for cash or exchange their burlington stock for berkshire stock.
Some people wouldn't have been able to buy even 1 share of berkshire stock with it over $3,000 for one class B share.
He is effectively allowing people invested in burlington to remain invested threw being able to buy a few shares of berkshire instead of being forced to take the cash and totally pushed out of their investment.
People would have been really pissed if the value of burlington went up a lot in the coming years and they got forced totally out of their investment.
Imsurance companies have globs of cash in reserve they invest so they can pay out claims.
| Quote: | | busy plotting the deaths of all school teachers and Baby Boomers. |
is that possible? I never thought of it, you work on it and let me know what you come up with.
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EnSoledad
Joined: 09 Oct 2005
Posts: 1283
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| Posted: Sat Nov 07, 2009 12:50 pm Post subject: |
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| zigzag wrote: | | The new hot potato is US dollars. |
Yeah, Buffett bought a big stake in ConocoPhilips last year.
Only problem is when oil prices were over $100barrel.
I bought some ConocoPhilips around $45shr.
Solid dividend, and if you believe in peak oil and the US dollar going down the tubes thanks in part to ObamaEcon...it's good to have some exposure to oil stocks in your portfolio.
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zigzag
Joined: 07 Oct 2005
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| Posted: Sat Nov 07, 2009 1:24 pm Post subject: |
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http://finance.yahoo.com/q?s=USO&.yficrumb=ry2fn9H364z
(USO)
Canadian Dollar Trust(FXC ) and CurrencyShares Australian Dollar Trust(FXA )
ETF's look interesting, my guess is lots of people are going to believe in some Obomba recovery, it won't last long so running for the hills will probably be a wise move.
| EnSoledad wrote: | | zigzag wrote: | | The new hot potato is US dollars. |
Yeah, Buffett bought a big stake in ConocoPhilips last year.
Only problem is when oil prices were over $100barrel.
I bought some ConocoPhilips around $45shr.
Solid dividend, and if you believe in peak oil and the US dollar going down the tubes thanks in part to ObamaEcon...it's good to have some exposure to oil stocks in your portfolio. |
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