I was perusing the financial sector today and happen to notice that Goldman Sachs (GS), has been trading above $140.00/share for the past few weeks.
That’s quite an improvement from three to six months ago, when everyone thought the world was coming to an end, and Goldman Sachs was trading around $50-$60/share.
I’m sure it also happens to be great news for Warren Buffett, who purchased $5 billion in Goldman Sachs stock late last year at $123.00/share along with warrants to buy $5 billion more at $115.00/share.
Mr. Buffett was harshly criticized at the time for his investment in Goldman Sachs, and word quickly spread on the street that perhaps he was losing his touch. But considering today’s prices for GS, once again, Warren Buffett has proved his detractors wrong.
Which brings me to the point of this post -
Why would anyone bash Warren Buffett anyway? The only reasons that come to mind are either an attempt to prove superiority in order to sell a product, or perhaps just petty jealousy. Who knows?
Whatever the reason, there are two investment gurus who never deserve to be bashed by anyone, at anytime – Warren Buffett and John Bogle.
Both investment gurus have consistently espoused the importance of honesty and integrity in dealing with others, and have warned us numerous times about Wall Street shenanigans. How many times have you heard Warren Buffett describe derivatives as “weapons of mass destruction”, long before we found out the hard way.
They’ve both long-provided us simple, free, but priceless investment advice on how to become successful investors. This is not only advice that both Buffett and Bogle talk about, but practice in living their thrifty lifestyles.
What type of investment advice have both gurus espoused over the years?
- Live below your means.
- Pay down your debt.
- Keep an eye on fees.
- Think rationally for oneself
- Make your own investment decisions.
Nothing there worth bashing in my opinion.
In the world of Wall Street, where almost every executive views the average American as a “mark just waiting to be taken”, these two investment gurus have always been honest and ethical in their investment advice and business dealings. I’d challenge anyone to find evidence that either Buffett or Bogle misinformed anyone in order to line their pockets at your expense.
Related Links:
[Buffett Video] 2006 University of Florida MBA Talk.
[Bogle video] 2009 CBS: Is the Free Market Corroding Moral Character?
[Bogle video] 2009 M* Conference: This Bear Market’s the Worst I’ve Seen.
[Bogle video] 2009 M* Conference: Today’s Return Expectations.
[Bogle video] 2009 M* Conference: Buy and Hold Is Eternal.
Comments 3
Just this morning, I was watching a re-airing of a CNBC interview with Buffet from several months ago, when they Dow was at 6600. I just can’t get over how great and honest of a person he seems. Everytime one of the CNBC folks seemed to interrupt him to get one of there questions/points in, I wanted to reach through the TV to strangle them.
To CNBC:
1. How could you possibly have commercials while you have one of the richest men in the world on your program; how insulting is that?
2. How dare you interrupt a guy who is speaking, to make your own point, when he knows more about making money in the lint under his pinky finger, than you do in your whole family lineage.
And about Bogle, I just saw that the book you have displayed above is on sale for less than $2 on Half.com – I’m going to buy it! How’s that for a value investment!
Posted 03 Jun 2009 at 8:01 am ¶Err – the book I referred to was in the wikipedia page from the link you posted above.. heheh.
Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor (John Wiley & Sons, 1999), ISBN 0-471-39228-6
Posted 03 Jun 2009 at 8:04 am ¶Yeah.. unfortunately, I’ve seen the same disrespectful treatment given to Mr. Bogle too. It’s almost like they think he’s the Rodney Dangerfield of the investment world.
One of the qualities that I like about Mr. Buffett is that he never says that he has all of the answers or claims to be omniscient. As a matter-of-fact, he usually states just the opposite.
He’s never said that he has the ability to call a bottom. In the “short-term” it may look like he’s losing his touch, but in the “long-term” he’s almost always correct.
He’s a very self-effacing man.
Buy the book. It seems like “common sense”, and you can’t go wrong at $2.00.
Heck, it would cost that much to drive to the library and back. I’d send you the copy that I had for free, but I just donated “all” of my small personal library to the Phoenix Public Library. I figured that they’re just sitting on my shelf, why not put them to good use?
Posted 03 Jun 2009 at 4:05 pm ¶Trackbacks & Pingbacks 2
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[...] Buffett and Bogle should not be criticized. Very well said. How about criticizing those who start slicing and dicing Buffett’s moves? [...]
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