I have followed Warren Buffett’s work since 1968. I could lecture on how he made his money for 12 hours without being interrupted and without going to the bathroom. Now I happened to like Goldman Sachs, and in fact, put my friends in the stock after the bad news took it down 40 points. My opinion is objective, and Buffett’s is not.
Actually, he is full of crap on this one. He’s got $5 billion invested in Goldman, and that makes him or anyone else BIASED. What Goldman did was MORALLY WRONG, totally reprehensible (look it up) really. What does Buffett say? Well, he thinks it’s no big deal, and the investment is coloring his judgment.
In the same breath, he says that Moody’s is an okay firm too. Naturally, he’s got bucks in that one too. Moody’s should be put out of business for giving toxic bonds a triple A credit rating when they weren’t worth the paper they were written on. I know the deal, so I know. For $600,000 per $100 million bond deal, Moody’s would certify your dead mother as Triple A. That’s what they charged, and if you didn’t like the deal, you could go across the street to S&P and try to get it done for $500,000.
Now Warren’s partner, Charlie Munger was much tougher on Wall Street than Warren. He said that the financial industry is a” very defective system”. Munger likes to blame government regulations which he calls dysfunctional. The truth is that Wall Street is a very corrupt place – been there, done that. Any questions, please write me.
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