When we get older, we get messed up in the head. It’s just part of life that you eventually come to accept around the age of 40.
Warren Buffett is a great example of somebody who’s so old now, he’s crazy in the head.
You guys remember back in October of 2008, right after the emergency bailout of the financial system, the Sage of Omaha said, “The market will move higher” and then proceeded to buy Walmart at $55 per share. Four months later, Walmart stock traded at $46 putting Buffett hundreds of millions of dollars in the red on the trade. Today, over 3 years later, Walmart trades at $59 per share: a pathetic 7% return in 3 years or about 2.5% per year.
Warren Buffett does not make most of his money from his trading activities anymore, he’s too old and crazy in the head now. Warren Buffett makes his money by writing high interest loans.
Talk about really stupid to buy anything long term back in October of 2008 while a global financial melt down was underway.
Here is the lesson I did on this subject back in 2009 entitled Buffett Kills Thousands Of Traders Shocker
And just when I though Buffett might still be at least a little sane, he puts his son, Howard Buffett, in as chairman subject to shareholder approval. Howard Buffett is a farmer that plants seeds and pulls weeds for a living. The guy is a college drop out.
Just wait until you hear what he’s learned from his Dad about running a company.
You know what this is really about? It’s about the Dad passing down the company to his son. It’s not about doing what is best for shareholders, it’s about nepotism.
Nepotism is the idea that you hire relatives or friends. It’s about promoting who you know rather than what they know. It’s relationship or friendship over merit.
I hate nepotism.
I’ve seen people that suck at just about everything get hired or even promoted over somebody who has real talent, just because they have a relative or friend inside a company.
That is not the free market at work folks. It’s not the best quality or the best talent getting hired. It’s not about finding the best people to work for your company to increase shareholder value. It’s about shallow relationships or blood. You’ve heard the saying it’s not what you know, it’s who you know. And that is the case with Warren Buffett pushing his son as chairman.