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The Warren Buffett Paradox, Part 1 (The Bailout)

Posted by Sean | Posted under Ramblings, Rants | September 28, 2008

“Warren Buffett does XYZ — so take that! — end of story.”

People use Buffett not to win debates, but to avoid the critical thinking of debates. This creates latent problems, however, when he goes against people’s pet positions.

Solutions to this dissonance are awkward. When Buffett appears to support someone’s position (even if he does not) he is the without a doubt the smartest person on the planet. Then when he goes against the same person’s positions, he is no more insightful than a bum on a street corner.

Sorry, it does not work that way. Logically, it cannot work that way.

Either he is one of the smartest people in the room when discussing things in his “wheelhouse” or he is not. It is not hyperbole to ask if Warren Buffett has spent more time on financial problems than anyone who ever lived. His biography is so revealing. Why do people only accept his caricature?

NEWS FLASH: Warren Buffett on the on the proposed bailouts…

…from CNNMoney.com:

Legendary investor Warren Buffett warned Congressional leaders Saturday night of “the biggest financial meltdown in American history” if they did not act to secure the financial system.

also…

Buffett also warned that the financial crisis is "everybody’s problem," not just Wall Street’s. The potential collapse of financial institutions would cause industry to grind to a halt,

Hey, who the heck is this Warren Buffett guy?

Shouldn’t he be 100% free market, the invisible hand is never wrong, liquidate everything if necessary, depressions fix everything, we can live in peace & anarchy, etc?

If only the world was so simple.

Anyway, now the average person has a choice. They can continue to look at the world in the most simple terms possible — I would say, simplistic – or declare that they understand the global financial system better than Warren Buffett.

No offense to any pfbloggers, but I’m listening to Warren Buffett.

Of course, any major player is going to talk their book, but I think Buffett has talked beyond his book more than most. Nobody wins by neglecting the bigger picture. Especially not the person who made the largest charitable donation in history.

+ + +

…stay tuned for the Warren Buffett Paradox, Part 2 to Part 100.

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