Home > Blogs > Terry Kuehn > Terry Kuehn's (terrykuehn) Blog

Buffett ain't no dummy....

By Terry Kuehn

Real Estate Agent with Family Real Estate Services, Inc.

February 12, 2008 12:14 PM

Warren Buffett, possibly a mentor to some of us here, has stepped forward. Some may regard him as antiquated, some maybe as eccentric, but I contend that Warren Buffett has more screws in place than not.

http://globaleconomicanalysis.blogspot.com/2008/02/buffetts-kiss-of-death.html

"Buffett smells an opportunity here and he is likely correct. Furthermore he is not going to make the mistake that both Ambac and MBIA made in insuring CDOs, subprime mortgages, and other toxic waste."

"If the municipal debt was reinsured by AAA rated Berkshire, the borrowers would also retain the top rating, Buffett said. Without AAA ratings, thousands of schools, hospitals and local governments may be forced to pay higher interest and some fund managers would be forced to sell any holdings that lose their top rating." (emphasis mine)

http://www.bloomberg.com/apps/news?pid=20601087&sid=aAxVkU8yAycM&refer=home

"The risk of bond insurers MBIA Inc. and Ambac Financial Group Inc. defaulting rose after billionaire Warren Buffett offered to assume responsibility for $800 billion of municipal debt, excluding subprime-linked securities."

Comments(3)

Comment

Show All Comments Sort:

Billie Dalessio

Home Run Realty, LLC - North Haven, CT

I guess that's why he just surpassed Bill Gates yesterday as world's richest billionaire.

Mar 07, 2008 08:05 AM

Marzena Melby

Coldwell Banker Burnet Realty - Richfield, MN

Realtor, Twin Cities Minnesota Real Estate

Terry - obviously, he is going to make money on this but he could have set on the sidelines watching the economy go down the drain. I know some people who hate him. Thank God, someone with resources like his is willing to do this.

Mar 11, 2008 05:02 AM

Terry Kuehn

Family Real Estate Services, Inc. - Tacoma, WA

Self-Directed Roth IRA Associate

Michelle and Marzena, I wonder if people hate the guy or are merely envious. As I just typed that sentence I remembered that I was in the Berkshire website a while back and hit the "store" button and discovered that Berkshire was selling Berkshire Hathaway ball caps. I remember getting ready to click and order one, something came up and I never got back to ordering me a Berkshire Hathaway hat. Me, I'm passively envious of the guy, admire the brilliance that he apparently has, and I definitely want one of those Berkshire hats.

I look at it this way: if I get me one of those hats, each time I look at the thing or wear it, it will force me to think "Berkshire Hathaway" and that will force me to think "Warren Buffett" and that should force me to think financially conservative with the long haul in mind rather than what all I can make between now and next Thursday.

Maybe I'll add something here about another gentleman I've studied a bit about, a guy by the name of Trammell Crow. I wonder how things would have turned out if Warren Buffett and Trammell Crow would've ever gotten together and began spending money?

Mar 11, 2008 10:06 AM

Buffett ain't no dummy....

Comments(3)

Terry Kuehn

Real Estate Resources

Recent Posts