Warren Buffett Video Interview

The Oracle of Omaha - Warren Buffett Video Interview

In his wisdom Barack Obama chose Tim Geithner, a man who forgot to pay his taxes, as US Treasury Secretary, instead of the Oracle of Omaha Warren Buffett a man who filed his first income tax return at the age of 13 when he had a paper round. The Senate Finance Committee confirmed Tim Geithner's nomination by a vote of 18-5 but if you want to have your own vote then click here to vote - Geithner Gate - you can also leave your comments too.

In the meantime Warren Buffett has given an interview to Susie Gharib on Nightly Business Report. He stated that things are still bad but improving, that the recession won't be short but that he doesn't know how long it will be, and that he doesn't expect any short term miraculous turnaround because Barack Obama has been elected, but he is confident that over time things will improve.

To see the interview go here - the interview took pace on 22 January and starts 7 minutes into the programme - Warren Buffett Interview

Warren Buffett Morningstar CEO of Year

The Oracle of Omaha - Warren Buffett Named CEO of the Year 2008 by Morningstar

Morningstar have named Warren Buffett aka the Oracle of Omaha the CEO of the Year for 2008. This annual award, which was awarded for the first time in 2000, is made to a CEO “who exhibits exemplary corporate stewardship, demonstrates independent thinking, creates lasting value for shareholders, and has put his or her stamp on an industry.” To Warren Buffett fans and followers the world over, the first question that comes to mind is why have they waited so long?

To see exactly why they have chosen to honor Warren Buffett in this way this year you will need to visit the Morningstar website – Warren Buffett CEO of the Year 2008

Strangely, some people have criticized Warren Buffett for what they consider to be mistakes made this year i.e. the “writing of large put option contracts on broad stock indexes last year, the company's $8 billion worth of investments in General Electric and Goldman Sachs in September and early October.” He has also been criticized for writing in the New York Times "Buy American. I Am."

These criticisms, however, make little sense. We will not know if Warren Buffett has made a mistake with his investments until at least 5 years have eapsed, as all his investments are long-term and he does not claim to be able to pick market bottoms.

It is worth bearing in mind nevertheless that he was buying shares on 16 October 2008 when the DOW was near its lows for the year around 8000, but as soon as the market turned around (the same day) and started moving up he stopped buying.

Mr Buffett also negotiated a very nice “sweetheart deal” with both GE and Goldman in perpetual preferred stock, which means that Berkshire Hathaway is at the front of the line and will in any case receive a 10% coupon on its investments, even if the GE and Goldman stock never recover to their former heights.

It is also highly significant that Warren Buffett had $50 billion in cash available at the start of this financial crisis, as he has been avoiding putting money into equities for years, Back in 2003 he stated that derivatives were “toxic” and "financial weapons of mass destruction." - see Warren Buffett biography His friend and associate Charlie Munger, in typical forthright fashion said “To say derivative accounting in America is a sewer is an insult to sewage.”

In summing up Morning Star state : “While many corporate managers may say they are positive and careful stewards of owner capital, few overtly view common shareholders for what they really are--partners. For being a successful managing partner, both in principle as well as in practice, Warren Buffett is our 2008 CEO of the Year.”

Congratulations to Morningstar on their wise decision, but of course Warren Buffett should win the award every year.
The Biography of Warren Buffett by Alice Schroeder The Snowball: Warren Buffett and the Business of Life
Warren Buffett may have had something to say himself - see Warren Buffett Quotes