Saturday, February 28, 2009

Berkshire reports a 96 percent drop in 4Q profit

On October 26 2008, I wrote the following about Market Fundamentalism that sounded quite offending to many type-two suckers who manage multi-billion funds based on valuations and market fundamentalism.

Collapse of Market Fundamentalism

Did you read the 5th paragraph?

This morning, Berkshire Hathaway Inc. reported a 96 percent drop in its fourth quarter profit because of largely unrealized losses of $3.25 billion on investments and derivative contracts. In the report, Mr Buffet confesses that it is all his mistake. This alone makes me rethink about his ability to learn despite his age and honestly I might have been underestimating his adaptive skills.

However there is still an army of thick headed fund managers in the business that will not understand what has really changed and why it is different this time, until the grand day of reckoning. Until then the wealth transfer from this army of suckers to the minority at the top of the pyramid will continue like a fight between dinosaurs and their predators... lengthy and bloody.
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