CHESSNOID

Confidence in the economy seems to be dropping even after the unprecedented bail out last Friday.  Even so, we heard news of how much Warren Buffett of buying stock in certain companies.  I don’t know what all his holdings are but I am sure most of his money is invested in stocks and bonds.

What that really means is that he and the richest people in the world who have stock holdings are losing the most money. At least on paper.  The Dow was over 14,000 just a year ago and now it dipped below 10,000 which is about a 30% loss.  When you open up your 401k statement in shock at how much value has been lost, maybe imagining how much the rich people have lost will make you feel better.  Probably not. Lol.

Originally, I was surprised to hear that Buffett supported the bailout when it really didn’t help the American people.  Using tax money to bail out private entities is a moral hazard, and yet the wealthiest man in the world says it should be done.  He seems like a nice man, but it is easy to see his motivation is the same as everyone else.  No one likes to lose money. Berkshire Hathaway was down 5.5% today (about $7,700) and closed at $130,800 a share.  It is off it’s 52 week high of $151,600 a share which is still better than the overall market performance.

He is estimated to be worth over $60 billion. Can you imagine how it must feel to lose $20 billion in the stock market? Yeah, me either, but I think it is all relative.  I know if your last 401k statement shows the value going from $100,000 to $70,000,  you will probably feel queasy in disbelief.  When he was saying that the government needed to step in and bailout Wall Street, it was kind of like bailing him out since that is where his fortune is.