Saturday, October 19, 2013

Buffett: Debt limit is 'political weapon of mass destruction'




Warren Buffett said Wednesday the threat to not raise the nation's debt limit "after you've already spent the money" is a "political weapon of mass destruction" comparable to poison gas and shouldn't be used by either party.

"I know it's been used in the past, but we used the atomic bomb back in 1945 but we decided we weren't going to do something like that again," he said hours before the government's midnight deadline to raise the debt limit or possibly default.

Buffett called on both sides to pledge not to use the debt limit as a weapon. "There are plenty of weapons that can be used," like filibusters, he said.

In a live interview on CNBC's "Squawk Box, the Berkshire Hathaway chairman said he doesn't expect the U.S. will do anything to damage its 237-year reputation of paying its bills on time, but if it does it would be a "pure act of idiocy" and "asinine."

"Credit worthiness is like virginity, it can be preserved but not restored very easily, so it is crazy to play around with it," he said.

Buffett said Berkshire owns short-term Treasury securities but he isn't worried about getting paid.

He also said the ongoing crisis in Washington over spending and the debt limit is no reason to avoid buying securities, pointing out that Berkshire subsidiary Marmon Group just paid $1.1 billion for a British drinks dispensing business. "We did not buy it with a condition that we could call off the deal" if there was no vote to raise the debt limit, he said.

He added that in his long career, he has never put off a deal by a few weeks to see what might happen in Washington.

When it was pointed out to him that he may be "unique" because he is a long-term investor, he replied that "most people are."

"If you take the people I meet in Omaha, you take the people who own farms, you take the people who own apartment houses, most people are long-term investors, thank heavens," he said.

Buffett rejected the idea that investors should be worried about a bull market "bubble" for stocks. He said, "We could at some point, but no, stocks are not selling at bubble levels. What do you diversify in? You want to diversify into cash? I think it's a terrible investment compared to equities. You want to diversify into long-term bonds? I think it's a terrible investment compared to equities."

Buffett also said Berkshire's spending rate on acquisitions this year is as "high as ever."

He told Becky Quick he had been working on a big acquisition, a $12 billion "elephant," but the deal didn't come together.

Buffett was interviewed in Washington where he is attending Fortune's Most Powerful Women summit.

Source/Extract/Excerpts/来源/转贴/摘录: CNBC
Publish date:16/10/13

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Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
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