Posts Tagged ‘Berkshire Hathaway’

Ludwig von Mises

From today’s LewRockwell.com article, The Duplicity of Warren Buffett, Eric Englund wrote:

Although far from legendary, Warren Buffett’s cognitive dissonance, regarding taxes, is maddening. On the one hand, he celebrates the Sixteenth Amendment and brags about the billions of dollars Berkshire Hathaway pays in federal income taxes – after all, Buffett is self-described as Uncle Sam’s “grateful nephew.” Yet, on the other hand, he basically refuses to lend money to Uncle Sam for fear that the federal government will pay back the loans with cheaper dollars; which is, as Ron Paul describes, the inflation tax.

What did Ludwig von Mises say about inflation as a tax?

People sometimes call inflation a special way of “taxing” a country’s citizens. This is a dangerous opinion. And it is wholly untrue. Inflation is not a method of taxation, but an alternative for taxation.

For more on Warren Buffett, see my article, Warren Buffett’s inconsistencies.

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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.

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