Can somebody please explain this ASAP?

[StageLeft]

Link

We all know that Buffet last year when in heavy on stocks, saying it was time to be greedy while others were fearful.

I can't get time-details out of this article, but Cramer reports that

[Buffet] sold more than half of his 52 million shares of Johnson & Johnson and he sold it at a 20-year low relative to its yield.

What does he know?

 

[LegendKiller]

Originally posted by: Skoorb
Link

We all know that Buffet last year when in heavy on stocks, saying it was time to be greedy while others were fearful.

I can't get time-details out of this article, but Cramer reports that

[Buffet] sold more than half of his 52 million shares of Johnson & Johnson and he sold it at a 20-year low relative to its yield.

What does he know?

Maybe that he can make more money on companies with depressed prices?

 

[daveymark]

edit: nvm

 

[Jaskalas]

Originally posted by: Skoorb
What does he know?

That the PR stunt is over, it's time to save what money he has left.

 

[DaveSimmons]

To make his point, Cramer carefully avoids telling us what Buffet is buying with the money.

What is Cramer hiding from us!? :|

 

[Lemon law]

In terms of simple logic, if Buffet is selling stock and converting it to cash, we will not know anything about Buffets plans until he uses that cash to make new acquisitions.

But if Buffet is raising cash to make some huge masterstroke, he might sell even profitable companies to have enough cash to finance the whole package.

As the old saying goes, the time to make money is when blood is running in the streets.

 

[chess9]

Originally posted by: Lemon law
In terms of simple logic, if Buffet is selling stock and converting it to cash, we will not know anything about Buffets plans until he uses that cash to make new acquisitions.

But if Buffet is raising cash to make some huge masterstroke, he might sell even profitable companies to have enough cash to finance the whole package.

As the old saying goes, the time to make money is when blood is running in the streets.

Yes, he's probably going to hold onto cash for awhile. He might also want to buy into one of the failing auto companies or banks. GM stock is at, what $1.25 or so? Sheezh.... We'll see....

I took a cash position (except for Treasuries, which are almost cash) about three years ago. I'm not regretting it.


-Robert

 

[StageLeft]

Originally posted by: DaveSimmons
To make his point, Cramer carefully avoids telling us what Buffet is buying with the money.

What is Cramer hiding from us!? :|

Hehe, if true, that's a good point!

 

[Chunkee]

beer money?

 

[LegendKiller]

Originally posted by: Jaskalas

Originally posted by: Skoorb
What does he know?

That the PR stunt is over, it's time to save what money he has left.

Only a fool would think that this situation is permanent.


Ironically, his father and his uncle were like you, permabears who thought the sky was falling. His father bought a farm so that the family could survive once the democrats ruined the country and debased the dollar. They stocked away sugar and flower in the attic for the same reason. For his whole life Buffet heard about the impending doom that the Democrats were going to cause.

Yet, he has always maintained a long-term view of prosperity while looking for deals. Deals when other people were scared, creating even more deals.

He loves suckers like you.

 

[CPA]

Just watch CNBC for his thoughts. They interview him like every five minutes.

 

[JeffreyLebowski]

He's selling "resession proof" company stock, because people will buy it because it's "resession proof" He gets cash and turns it into something even more resession proof like Gold, or maybe he's going to buy GM. If he could raise a few billion from the sale of his stock, buy GM, kick the union out and effectively reboot the company, he'll make his money back.

 

[LegendKiller]

Originally posted by: JeffreyLebowski
He's selling "resession proof" company stock, because people will buy it because it's "resession proof" He gets cash and turns it into something even more resession proof like Gold, or maybe he's going to buy GM. If he could raise a few billion from the sale of his stock, buy GM, kick the union out and effectively reboot the company, he'll make his money back.

Maybe he sees the fact that he can get 10-15% yield on convertable Preferred stock in any number of companies that want money, now, and he's taking advantage of an unprecidented situation while everybody else runs around like headless chickens.

But that's just a wild-ass guess **COUGHTIFFANYSGOLDMANGEUSGHARLEYCOUGH**

Skoorb can't even understand this but he can toss around great prognostications about "ROI" on something with fundamental returns that aren't quantifiable except in an alternate universe scenario.

 

[theeedude]

Because these consumer staples held up in price due to people viewing them as recession proof, while a lot of other companies stocks are selling much much cheaper than before.
Buffett is a value investor, so he must see more value elsewhere, and selling those assets that are valued dearly to buy those that are sold cheap.
I bought Yamana Gold for $4.5 in November because it was a screaming value, now that it's doubled, It's not as good of a value, so I'll sell part of it and look for something else that is battered down with solid fundamentals.

 

[StageLeft]

Thanks for the posts--added a meaningful perspective.

 

[chess9]

Originally posted by: LegendKiller

Originally posted by: JeffreyLebowski
He's selling "resession proof" company stock, because people will buy it because it's "resession proof" He gets cash and turns it into something even more resession proof like Gold, or maybe he's going to buy GM. If he could raise a few billion from the sale of his stock, buy GM, kick the union out and effectively reboot the company, he'll make his money back.

Maybe he sees the fact that he can get 10-15% yield on convertable Preferred stock in any number of companies that want money, now, and he's taking advantage of an unprecidented situation while everybody else runs around like headless chickens.

But that's just a wild-ass guess **COUGHTIFFANYSGOLDMANGEUSGHARLEYCOUGH**

Skoorb can't even understand this but he can toss around great prognostications about "ROI" on something with fundamental returns that aren't quantifiable except in an alternate universe scenario.

Where would he get 15% interest on convertables? That's a great idea if it can be done.... I'm not sure I'd rely on getting those returns on a safe investment, but I'm not in the business.


-Robert

 

[StageLeft]

Originally posted by: LegendKiller

Originally posted by: JeffreyLebowski
He's selling "resession proof" company stock, because people will buy it because it's "resession proof" He gets cash and turns it into something even more resession proof like Gold, or maybe he's going to buy GM. If he could raise a few billion from the sale of his stock, buy GM, kick the union out and effectively reboot the company, he'll make his money back.

Maybe he sees the fact that he can get 10-15% yield on convertable Preferred stock in any number of companies that want money, now, and he's taking advantage of an unprecidented situation while everybody else runs around like headless chickens.

But that's just a wild-ass guess **COUGHTIFFANYSGOLDMANGEUSGHARLEYCOUGH**

Skoorb can't even understand this but he can toss around great prognostications about "ROI" on something with fundamental returns that aren't quantifiable except in an alternate universe scenario.

LOL, you're a hoot. You are so annoyed at my smack down of you a couple of days ago that you're looking out for any opportunity to try and bring me down a notch. Sad, really. BTW, uh, you're in the wrong thread. The ROI talk was in the thread about Paulson. Try to keep up, killer.

 

[Zebo]

Senility.

 

[LegendKiller]

Originally posted by: Skoorb

Originally posted by: LegendKiller

Originally posted by: JeffreyLebowski
He's selling "resession proof" company stock, because people will buy it because it's "resession proof" He gets cash and turns it into something even more resession proof like Gold, or maybe he's going to buy GM. If he could raise a few billion from the sale of his stock, buy GM, kick the union out and effectively reboot the company, he'll make his money back.

Maybe he sees the fact that he can get 10-15% yield on convertable Preferred stock in any number of companies that want money, now, and he's taking advantage of an unprecidented situation while everybody else runs around like headless chickens.

But that's just a wild-ass guess **COUGHTIFFANYSGOLDMANGEUSGHARLEYCOUGH**

Skoorb can't even understand this but he can toss around great prognostications about "ROI" on something with fundamental returns that aren't quantifiable except in an alternate universe scenario.

LOL, you're a hoot. You are so annoyed at my smack down of you a couple of days ago that you're looking out for any opportunity to try and bring me down a notch. Sad, really. BTW, uh, you're in the wrong thread. The ROI talk was in the thread about Paulson. Try to keep up, killer.

Smack down? Bitch, please, you couldn't smack down a coked out $5 bangcock hooker. You're the one who chicken shitted out of a conversation because I cornered your ass.

Why don't you go back to your hurting head and leave finance to the people who actually know what they're talking about.

 

[StageLeft]

Originally posted by: LegendKiller

Originally posted by: Skoorb

Originally posted by: LegendKiller

Originally posted by: JeffreyLebowski
He's selling "resession proof" company stock, because people will buy it because it's "resession proof" He gets cash and turns it into something even more resession proof like Gold, or maybe he's going to buy GM. If he could raise a few billion from the sale of his stock, buy GM, kick the union out and effectively reboot the company, he'll make his money back.

Maybe he sees the fact that he can get 10-15% yield on convertable Preferred stock in any number of companies that want money, now, and he's taking advantage of an unprecidented situation while everybody else runs around like headless chickens.

But that's just a wild-ass guess **COUGHTIFFANYSGOLDMANGEUSGHARLEYCOUGH**

Skoorb can't even understand this but he can toss around great prognostications about "ROI" on something with fundamental returns that aren't quantifiable except in an alternate universe scenario.

LOL, you're a hoot. You are so annoyed at my smack down of you a couple of days ago that you're looking out for any opportunity to try and bring me down a notch. Sad, really. BTW, uh, you're in the wrong thread. The ROI talk was in the thread about Paulson. Try to keep up, killer.

Smack down? Bitch, please, you couldn't smack down a coked out $5 bangcock hooker. You're the one who chicken shitted out of a conversation because I cornered your ass.

Why don't you go back to your hurting head and leave finance to the people who actually know what they're talking about.

I would never hit your wife.

 

[EagleKeeper]

Boys:

LK & Skoorb

Take it to PM if you need to.

This is a decent thread, let us not have it derailed.

 

[rudder]

It's all over... HE IS STOCKPILING GOLD!!!!!!!!!!!!!!!!!!

 

[piasabird]

Maybe he is shortselling?

On the other hand maybe he thinks he has no confidence in the ability of the President and his team to turn around the economy. It could be a no confidence vote against president O'Bama.

 

[Double Trouble]

Originally posted by: Skoorb
I would never hit your wife.

:laugh:

Gentlemen, gentlemen, keep it civil.

I'm guessing Buffet is looking at the "recession proof" companies and realizing that their stock prices have been bolstered by people fleeing other sectors toward supposedly recession proof industries. If those bolstered stock prices are not justified by the long term outlook of the companies, then selling those stocks and investing elsewhere is the correct answer.

If I knew where "elsewhere" was, I'd be having a beer with Warren right about now at the club, not posting on AT.

 

[wwswimming]

Originally posted by: JeffreyLebowski
He's selling "resession proof" company stock, because people will buy it because it's "resession proof" He gets cash and turns it into something even more resession proof like Gold, or maybe he's going to buy GM.

i wouldn't be surprised if he's moving it into gold in anticipation of a
rise in gold from $960 to $1500. maybe he's just parking it there
as a safe haven while he figures out which companies will survive
the recession.