Warren Buffett was on Charlie Rose last night, after his “infamous” op-ed in the NYT yesterday. The interview clarifed some of the comments Buffett made in his op-ed. Additionally, Warren Buffett called for lower Govt. spending as percentage of 20-21%, far below the current level of ~25%. This might seem small but when we are discussing a budget of trillions of dollars, this is a massive difference. Buffett also called for taxes as % of gdp to average 18-19%, far lower than the rate reached under President Bush in 2006 and 207, where it was 27%!
Full video below:
Seth Klarman: Investors Can No Longer Rely On Mean Reversion
"For most of the last century," Seth Klarman noted in his second-quarter letter to Baupost's investors, "a reasonable approach to assessing a company's future prospects was to expect mean reversion." He went on to explain that fluctuations in business performance were largely cyclical, and investors could profit from this buying low and selling high. Also Read More
If I get time I will do a transcription on this and on James Grant from Saturday.