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Warren Buffett’s Berkshire dumps most of Goldman Sachs stake

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Re: Warren Buffett’s Berkshire dumps most of Goldman Sachs stake

#71

Post by eurasiantiger »

ineedasername wrote: post #46
rmrfstar wrote: post #5

Earlier quoted context omitted.

Because GS has never been about having a "brain trust". It is about proximity to power. That peaked in 1998 when Time magazine ran the "Committee to Save the World" cover, featuring Bob Rubin, Larry Summers, and Alan Greenspan. To this day, people talk about that cover.

Maybe the big names at Goldman aren't as big as they had been in 1998, but it's all still just a collection collection of social connections and who knows who and inroads into various power structures. And that's not just Goldman, that's banking and finance at a high level writ large.

It’s amazing how far a few kilos of cocaine will get one in those circles. Maybe the prohibition needs to be repealed to prevent cartels from running the markets.

Re: Warren Buffett’s Berkshire dumps most of Goldman Sachs stake

#72

Post by GeekyBear »

lonelappde wrote: post #67
arcticbull wrote: post #54

Earlier quoted context omitted.

So this was a solved problem with the Glass–Steagall Act (1933) brought in after the, you guessed it, great depression [1]. It was of course repealed (by Bill Clinton), as we'd learned our lesson thoroughly and completely. This led to 2008. And 2020. So naturally, given the broad-based success of the repeal, there's no interest in reviving it. [1] https://en.wikipedia.org/wiki/Glass–Steagall_legislation

Congress passes laws, not the President. The repeal passed the Senate on a near party line vote (R over D), sponsored by 3 Republicans, and passed the House will nearly all R and 2/3 of D. Clinton could have vetoed it, though, since the Senate didn't have a two-thirds majority. https://en.m.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93... Of course, looking to the future from the future, a veto would likely be irre…

Clinton did not oppose the repeal at all. He was a cheerleader for the process.

Here's a snippet from his signing speech.

>You heard Senator Gramm characterize this bill as a victory for freedom and free markets. And Congressman LaFalce characterized this bill as a victory for consumer protection. And both of them are right. And I have always believed that one required the other. It is true that the Glass-Steagall law is no longer appropriate for the economy in which we live.

https://www.treasury.gov/press-center/press-releases/Pages/l...

Re: Warren Buffett’s Berkshire dumps most of Goldman Sachs stake

#73

Post by raincom »

Buffett's Berkshire Hathaway owns a range of companies, giving him an insight into the fundamentals of economy. However, retail investors and many hedge funds just focus on the market psychology, and hence, momentum. So, Buffett knows something that other don't know.

Re: Warren Buffett’s Berkshire dumps most of Goldman Sachs stake

#74

Post by GeekyBear »

cmurf wrote: post #70
arcticbull wrote: post #54

Earlier quoted context omitted.

So this was a solved problem with the Glass–Steagall Act (1933) brought in after the, you guessed it, great depression [1]. It was of course repealed (by Bill Clinton), as we'd learned our lesson thoroughly and completely. This led to 2008. And 2020. So naturally, given the broad-based success of the repeal, there's no interest in reviving it. [1] https://en.wikipedia.org/wiki/Glass–Steagall_legislation

The repeal of the Glass-Steagall Act had bi-partisan support. Following 2008, Dodd-Frank Act was passed by Democrats, opposed by Republicans, signed into law by Obama in 2010. After multiple attempts by Republicans to repeal it, they succeeded in 2017 and 2018, without bi-partisan support, both partial repeals signed into law by Trump.

>they succeeded in 2017 and 2018,without bi-partisan support

You might want to do a little reading on the repeal of sections of Dodd Frank.

>The measure’s framework is expected to eventually pass the Senate thanks to a dozen finance-friendly and swing-state Democrats who have openly announced their co-sponsorship. With Republicans in control of the House, the bill seems destined to reach President Donald Trump’s desk this year.

https://newrepublic.com/article/147247/democrats-helping-tru...

Re: Warren Buffett’s Berkshire dumps most of Goldman Sachs stake

#75

Post by arcticbull »

lonelappde wrote: post #67
arcticbull wrote: post #54

Earlier quoted context omitted.

So this was a solved problem with the Glass–Steagall Act (1933) brought in after the, you guessed it, great depression [1]. It was of course repealed (by Bill Clinton), as we'd learned our lesson thoroughly and completely. This led to 2008. And 2020. So naturally, given the broad-based success of the repeal, there's no interest in reviving it. [1] https://en.wikipedia.org/wiki/Glass–Steagall_legislation

Congress passes laws, not the President. The repeal passed the Senate on a near party line vote (R over D), sponsored by 3 Republicans, and passed the House will nearly all R and 2/3 of D. Clinton could have vetoed it, though, since the Senate didn't have a two-thirds majority. https://en.m.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93... Of course, looking to the future from the future, a veto would likely be irre…

> Congress passes laws, not the President.

Indeed, what I meant to say was "under" and not "by". My bad. Too late to edit.

Re: Warren Buffett’s Berkshire dumps most of Goldman Sachs stake

#76

Post by valuearb »

raincom wrote: post #73

Buffett's Berkshire Hathaway owns a range of companies, giving him an insight into the fundamentals of economy. However, retail investors and many hedge funds just focus on the market psychology, and hence, momentum. So, Buffett knows something that other don't know.

His returns were far better before he owned any companies.

Re: Warren Buffett’s Berkshire dumps most of Goldman Sachs stake

#77

Post by valuearb »

mrscottson wrote: post #64
tguedes wrote: post #30

Earlier quoted context omitted.

Warren Buffet is currently overrated because he doesn't invest in a lot of tech stocks because he claims to not have a complete understanding of the business.If you look at his record from the 70s-90s, you will realize he is the greatest investor ever. We all have our strengths and weaknesses, don't judge a fish on its ability to fly. I think its great that he doesn't invest that much into tech and is very public abo…

> Warren Buffet is currently overrated because he doesn't invest in a lot of tech stocks... He's also overrated because of all the insider trading he engages in....he would be a lot poorer if the SEC had the resources/will to investigate his moves.

Lol, that’s clearly untrue. There is zero evidence he has done any insider trading ever.

Re: Warren Buffett’s Berkshire dumps most of Goldman Sachs stake

#78

Post by valuearb »

ohashi wrote: post #24
Slartie wrote: post #22

Earlier quoted context omitted.

He lost a huge pile on Kraft Heinz, and that was pre-Corona. Didn't yet realize those losses AFAIK. He lost a pile on the airlines and even decided to realize those losses. He lost a pile on that petroleum company that I forgot the name of, but which crashed and burned recently due to oil prices plunging. He hesitated a long time with tech stocks and lost a lot of money in the last decade due to opportunity cost. His…

Didn't he make that bet essentially by saying index funds would beat hedge funds?

He won that bet handily, index funds had roughly 4 times higher returns than the hedge funds.

Re: Warren Buffett’s Berkshire dumps most of Goldman Sachs stake

#79

Post by valuearb »

Slartie wrote: post #22
blackrock wrote: post #16

What does he know that we don’t? He just dumped most of his airline holdings, after losing some $5 billion dollars. It seems he might be going into cash, and sitting things out, until a true correction hits, and then he’ll go back in and pick up companies for pennies on the dollar.

He lost a huge pile on Kraft Heinz, and that was pre-Corona. Didn't yet realize those losses AFAIK. He lost a pile on the airlines and even decided to realize those losses. He lost a pile on that petroleum company that I forgot the name of, but which crashed and burned recently due to oil prices plunging. He hesitated a long time with tech stocks and lost a lot of money in the last decade due to opportunity cost. His…

During the period of all the failures you mention Berkshire is only up around 50%.

Re: Warren Buffett’s Berkshire dumps most of Goldman Sachs stake

#80

Post by phyalow »

koheripbal wrote: post #49
phyalow wrote: post #14

Earlier quoted context omitted.

Cant say I agree. I worked for various European and US IB's pre 08, then have for the better part of the last decade been a client of them. IMO GS's culture has always struck me as a lot of self anointed hubris and resembles attitudes found on /r/iamverysmart, which when viewed from the outside it makes one laugh. All US IB's these days are largely just commodity balance sheets. None of them have any tangible edge ov…

...and yet it was always extremely difficult to get a job there, and they paid the best. ...that's literally how you attract the best talent. ...so you, they were arrogant. Maybe some portion of that was earned?

I can assure you not much in high finance is "earned".
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