Posts Tagged ‘warren buffett’

The Pied Piper

October 22, 2008

I have immense respect and awe for Warren Buffett. (You still don’t know him???) Here’s a great article by him on the recent American financial debacle.

Recently, there was news about Buffett investing huge amounts in GE. I always feel that has a cascading effect. Let’s say Buffett tomorrow decides to invest a huge sum in company ‘X’. Once the news is out, worried investors like you and me who are searching for some profit margins in these troubled times, say hey here’s this guy going big guns on some company. Let’s just ride the wave. But what essentially this does is that it risk proofs Buffett from loss. Since there’s gonna be a huge number of individual investors riding this wave, in turn it insulates the company ‘X’ (as well as Buffett) from a steep descent in its share price or in the best case from even a miniscule descent! Yes, he is probably the smartest person around in the recent times, but I wonder how much does his already built up credibility play a part in his future investments? A topic for Freakonomics? 😉 Comments please….