Sunday, June 10, 2007

Berkshire Rebuttal: Andy Kern

A while back I had a post on my thought that Berkshire Hathaway's Warren Buffett has not recently been investing like, well, Warren Buffett. There was a time when 40% of Berkshire's assets were in 1 stock, American Express. Now before you freak I do fully realize that given Berkshire's size today, that is not possible. My point was, given the bear market we had after 9/11 (bottoming in 2003), Buffett really has not made any meaningful investments given Berkshire's size. Yes I know $3 billion is a lot of money, but when you have $40 billion to play with, it really isn't. You would have though I called the Pope a sinner. Many folks replied and I have been begging for a rebuttal, actually an intelligent rebuttal I should say as I do not consider "you a moron" necessarily a rebuttal. Finally I got one:

Andy Kern, over at the aptly named Berkshire Ruminations has posted a two parter, you can read them here. Read them and decide what you think. Andy has a great blog and I am a regular reader of it, I just still disagree with him. I guess one of us will be right and the really nice thing about what we talk about, we will be able to get an answer eventually .

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