Tag Archives: Warren Buffett
OK, I know America has had to deal with some pretty grim news lately from our great Southland. The troubles in Iraq don’t seem ready to go away yet, either. (Here in London, where I’m writing from, Tony Blair is taking a pounding for his support of GW.)
The gold market is giving Alan Greenspan a run for his (depreciated) money. Bullion soared to $455 an ounce in New York today, just shy of a 17-year peak. With the surge of buying we’ve seen lately from Asia (especially India), I certainly can’t rule out the possibility that the Midas metal will scale even greater heights in the days ahead.
What’s he trying to tell us? On Tuesday, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A or B) announced it will buy PacifiCorp, an electric utility serving six western states, for $5.1 billion in cash and $4.3 billion of assumed debt and preferred stock.
It’s hard to put the conclusion more simply than that. The stock market has tried valiantly to bounce off the April 23 low. So far, though, the rally hasn’t gained any real traction. There’s “no momentum.”
You can see the problem in the 10-day rate of change for the Standard & Poor’s 500 index. This momentum gauge has made a series of four declining peaks since February.
Readers are asking, in the wake of Warren Buffett’s downbeat comments about the U.S. dollar in his Berkshire Hathaway annual report. No question about it, Buffett isn’t just a good investor — he’s probably the best that ever lived. Over the past 39 years, his Berkshire holding company has compounded its book value at a stupendous 22% a year.