I saw this article by David Olive of the Toronto Star today that highlights Warren Buffett’s inconsistencies between his investment approach in principle, and in practice.
Some highlights are:
- He said not to buy banks, because of their ability to doctor their numbers so much, as we saw with the financial meltdown of 2007-2009 and beyond, yet is a major investor in several banks.
- He said not to make acquisitions with undervalued company stock, yet did exactly that with his company’s largest ever acquisition of Burlington Northern Santa Fe, for $26.4 billion.
- He called financial derivatives “weapons of financial mass destruction,” yet invested in them heavily and subjected shareholders to $4.6 billion in associated losses in 2008.
[...] Buffett, who pays a lower effective tax rate that his secretary. I wrote an article in 2010 about Buffett’s three major inconsistencies. He said derivatives are weapons of financial mass destruction, yet subjected his shareholders to [...]
[...] — you turned your back on the principles that made your company great, as I outlined in this article. Share this:FacebookDiggRedditTwitterLike this:LikeBe the first to like this [...]
[...] For more on Warren Buffett, see my article, Warren Buffett’s inconsistencies. [...]
[...] world’s richest man as of the end of 2010, Warren Buffett, before he turned his back on his principles, wrote in [...]