Warren Buffett on Charlie Rose

By now you've almost certainly heard or saw Warren Buffett on Charlie Rose's PBS show. But in case you haven't, here's the link.

I actually think Buffett is still the best stock-picker on the planet (no surprise). Certainly since the aftermath of WWII. And perhaps in all of history. What's more, just think how much better he'd be these days if he wasn't limited in what he could buy due to Berkshire Hathaway's size.

The whole hour was great stuff -- and Buffett got off his usual number of good, folksy lines. Such as he'd rather be "approximately right than precisely wrong."

All that said, I'm still very doubtful about the wisdom of the plan in Congress. Buffett even seemed to say he didn't know if the plan would work. (I'm operating from memory, not reading a transcript.) My hunch is that most politicians and talking heads want the plan to pass because if nothing is done, and the world comes to an end, they want to say at least they tried. Just a feeling I have. No proof. Look what the leave themselves open to if the oppose the plan, and the worst happens.

One thing that's surprising is Buffett's praise of FDR during the Great Depression. That FDR was a great leader and wildly popular is undeniable. But cooler heads can look back at the facts and see that the New Deal was not effective in battling the Depression -- and in fact prolonged it. The facts I'm pointing to are things like unemployment.

Oh well, I've posted before that I'd love Warren Buffett to run my portfolio and even be my CEO. But that doesn't mean I'd want him to be my airline pilot, my dentist or the guy replacing my roof. Or even set public policy. For that last part, I'd rather be ruled by his late father, Howard Buffett.

Comments

[Ranjit Mathoda]

You may find my review of Buffett's talk with Charlie Rose, and the link I provide to the text of the conversation, of value: http://mathoda.com/archives/433

[Alex]

I often get the impression that Buffett simplifies nuanced statements for the sake of clarity. In the interview, he favored selling a portion of the securities to obtain a market price, but he knew that the current incarnation of the bailout only references a form of reverse auction.

Also, his statements about FDR were a little vague. He really only praised FDR's ability to improve the confidence of the country, but he didn't connect that to a cure for the depression. In light of his
statements about the current crisis, it's possible Buffett meant that FDR's policies prevented a wave of defections from democratic and capitalist ethics in favor of communism/plutocracy etc... I find it hard to believe that he is unaware of the downsides to the New Deal.

Pure speculation, of course, but Buffett has never separated the human element from his economic views.

[Sivaram Velauthapillai]

I guess this is what separates a conservative from a liberal John... Conservatives will like Howard Buffett but liberals will like Warren Buffett ;)

[mike H]

that folksy line was a John Maynard Keynes original...

[John]

Ranjit: Thanks, if readers want to read his remarks they can check out your link or see if Charlie Rose's site offers the transcript (I can't remember offhand).

Alex: Perhaps I overstated Buffett's views on the New Deal regarding this interview. I certainly don't mean to put-down Buffett, because I admire the man enormously and his "Superinvestors of Graham-and-Doddsville" impacted my life tremendously. I'm also familiar with the view that FDR saved capitalism by making sure America didn't go down the fascist path that swept much of the world. And I'm sympathetic to it.

Sivaram: I see your point. But unfortunately Howard Buffett wouldn't be welcomed by most conservatives in the US these days. Too many are "Big Government" types who no longer go for the limited government philosophy. And H.B.'s views on foreign policy would make him unacceptable to the current power players in what's left of the conservative movement.

mike H: Thanks, I have heard Buffett say that line before but didn't know where it originated. I'm not surprised -- I've read Buffett praise parts of Keynes' "General Theory."