Monday, October 6, 2008

Warren Buffett on Charlie Rose

This was a highlighted article on the sidebar last week, but I think it deserves a more prominent place than the sidebar.

Charlie Rose Interviews Warren Buffett

It is a candid interview with the Oracle, and I just got finished listening to it.

What I took from it:
1) "You should be fearful when others are greedy and greedy when others are fearful"
2) The treasury plan is really an attempt to create liquidity in a broken market, and if done correctly it may very well make the government a good deal of money.
3) Trust and Confidence are what is missing in the market right now - and those attributes are like "oxygen." You can live for 50 years without thinking about the oxygen you breathe to sustain your body. But the minute there is no is the only thing you think about. We must restore trust and confidence.
4) Once we do this, and spend some time patching the holes we made in the system over the last 12 months, everything will be fine in the economy.
5) But (big "but" here) the treasury plan is inflationary. Price inflation was the lesser of two evils...either we allow the credit markets to seize like a engine without oil....or we have a functioning credit market with some potentially nasty inflation.

I hope you enjoy it, it is 54 minutes, but it is worth a listen - especially in this volatile time.

No comments:

Post a Comment