Buffett: Myth vs. Reality
By putting his "stamp of approval" on Bank of America, Buffett no doubt hoped to profit not just on the BofA deal, but also on his massive holdings in other blue-chip stocks — including financials like USBancorp and Wells Fargo, which would be at risk if a "systemically important" bank like Bank of America were to get into 'real' trouble, as appeared to be the case earlier this week.
The idea Buffett is doing the rest of us a favor is naïve, at best. He's not saving our economy, nor is he giving us a road map on how we can make money. He's just trying to make money for himself and his shareholders.
Again, not that there's anything wrong with that…but it says something about our society that we deify this billionaire rather than celebrate researchers seeking the cure for cancer, scientists trying to solve the world's energy crisis or our children's school teachers, not to mention our soldiers in uniform.
And while Buffett has never been accused of breaking the law, he's not without sin either. Consider:
- Buffett is the largest shareholder in Moody's, one of the rating agencies that placed AAA ratings on subprime mortgages that later proved toxic — arguably one of the biggest causes of the crisis of 2008 and its aftermath, including up to present day.
