ebaycj
Diamond Member
- Mar 9, 2002
- 5,418
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15% interest on convertibles? Just go to any GM dealership !!!
Actually that's what Buffett is good at, and why he is a multi multi billionaire. He is good at distinguishing what is "a safe investment" (given the amount he projects he will make on it), weighs the risk vs. reward, and has executed nearly flawlessly.
Nobody ever got mega-ultra-rich from "a safe investment".
HeXploiT
Diamond Member
- Jun 11, 2004
- 4,359
- 1
- 76
Jim Cramer is a loser.
I don't mean that as an insult I mean that quite literally.
No comment on Buffet. He's a smart man but has too much faith in the system. Looks like he's finally coming to his senses. Let's see where he puts his money in the coming months.
As LegendKiller said, if you look at Berkshire Hathaway's recent deals, the major ones (GE & GS) have been fixed income deals. In both cases, the yield has been 10 percent. In this market, since credit is tight, Berkshire Hathaway has essentially become one of the few companies willing to make major investments, and a fixed income deal yielding 10 percent is better than holding stock.
- Sep 29, 2000
- 70,150
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Thanks. I watch him for the first 10-15 min about every second day because he is interesting and does offer some viewpoint on what went on, but even watching his show and nobody else's numbers of it, one can see that he'll talk of a rally with feet that turns into a bloodbath the next day but his reaction is less likely to be surprise and more "told you this would happen", which he didn't.
The true Cramer was when he had that meltdown about the markets heading toward armageddon. That was the only call that I have heard from him that was dead on... That was his real side... Today he is just putting on a show.
- Sep 29, 2000
- 70,150
- 5
- 0
October 6, 2008: Cramer: Get out of stocks if you need the cash..."as much as a 20 percent decrease in the stock market"
I presume he first said this on, say, October 5th. In any case, on October 6 the DOW opened at 10,322 and closed at 9,503. Yesterday it closed at 7,555.63. Even if we ignore that 700+ point drop and assume he had an early reading on futures (and again, I don't know exactly what day he first said the five years), going from 9503 to 7555 is 20.4% drop.
He called it cold, no way around that. It was advice that anybody who didn't take it would have done well to listen to.
EDIT: It looks like he made this call during the 700, so yeah it's to-date dropped right on where he was concerned it would drop.Link
First
Lifer
- Jun 3, 2002
- 10,518
- 271
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Read your own link, Cramer said take it out if you need it over the next 5 years. It's insane to say he nailed anything, it has been less than 5 months since he said it. I hadn't heard his 20% remark until just now, but he's way late to to game on that as well. Anyone with half a brain going into last summer was saying that we were already in a recession (confirmed by NBER as starting 12/07), a recession that was clearly only going to get worse and worse with housing compounding spending woes compounded by CDS being called up (I said it myself in July). We knew the same stuff full well on September 15th (when the Dow was at 10,900) upon hearing the news that Lehman, AIG, et al were on the verge of impending death, and yet the Dow still hit 11,400 on September 19th, that same week. Anyone who was retiring within months of September 2008 who didn't get out that week either wasn't paying attention or was far too optimistic. We knew the decline was coming, and indeed it did. Cramer predicting it on October 6th also means he predicted 1000 points too late from September 19th.
Also, if you're trying to play the stock market for short term gains you're a poor investor. It was only good advice if you were an older couple last year, who was planning on retiring within the next 12 months. Otherwise, for a super-majority of the country it's terrible advice. You never try to time the market that exactly, routinely ends up in failure. For all we know the Dow is back to 11,000 by the end of the year and P/E's are more in line with historical values (less than 15 instead of ridiculously shit like 19-29).
Do you know why Buffet is the world's richest man?
Because for all of his life he has ignored people like you.
Are you, or anybody you know or follow, more rich than Warren Buffet?
Ohhh, you/they aren't? Wow, I guess your silly ideas suck, eh?
- Sep 29, 2000
- 70,150
- 5
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Do you know why Buffet is the world's richest man?
Because for all of his life he has ignored the status quo and thought outside the box.
Are you, or anybody you know or follow, more rich than Warren Buffet?
No
---
See, LK, that is how to respond to somebody getting the same point across without constant belittling and, eschewing the extremely heavy pedagogic tone, your message is more likely to be accepted with an open attitude instead of the instinctive eff-you attitude people will, by their nature as humans, take while being scolded like a child when they are merely positing an opinion on something and looking to expand knowledge.
Many of your posts are very informative, but audiences are swayed better when they are not meant to feel like idiots.
Originally posted by: Skoorb
Do you know why Buffet is the world's richest man?
Because for all of his life he has ignored the status quo and thought outside the box.
Are you, or anybody you know or follow, more rich than Warren Buffet?
No
---
See, LK, that is how to respond to somebody getting the same point across without constant belittling and, eschewing the extremely heavy pedagogic tone, your message is more likely to be accepted with an open attitude instead of the instinctive eff-you attitude people will, by their nature as humans, take while being scolded like a child when they are merely positing an opinion on something and looking to expand knowledge.
Many of your posts are very informative, but audiences are swayed better when they are not meant to feel like idiots.
What if they are idiots? Somebody like Hexploit won't change his tune because he's been out thought. At this point he has his nihilistic and ignorant viewpoints on the Fed and such and won't change. My posts aren't for him.
Originally posted by: Zebo
Does Sckoorby mean hit or hit. I was in thailand for 6 months and would definity hit it.
Had to take your shoes off though
Could you keep your socks on?
HeXploiT
Diamond Member
- Jun 11, 2004
- 4,359
- 1
- 76
If there is anything Jim Cramer is known for it's flip flopping. The guy makes so many calls there really isn't anything that happens in the market that he can't claim he said. It's quite ludicrous and humorous actually. Don Harrold has captured a great deal of this on youtube.
Just one example.
lol. Yeah, somebody as insane as you will help me? Please, I'd rather be crazy and self-diagnose using my own psychology undergrad.
Why would Buffett keep his money in JNJ when he can loan money(convertible senior notes) to GE, Goldman Sachs, USG and Tiffanys at 10% interest?
He also recently gave Harley Davidson 15% interest.
Only a complete moron would do otherwise.
If I could get the same sweet deals with my own money that Buffett is getting, I'd do it.
Give Harley Davidson $100, and get 15% interest every year for 10 years.
Not to mention that I'd be more protected against bankruptcy than holding their common stock.
Thump553
Lifer
- Jun 2, 2000
- 12,839
- 2,625
- 136
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