Author Topic: Warren Buffett: Forget Gold, Buy Stocks  (Read 10838 times)

Parsad

  • Administrator
  • Hero Member
  • *****
  • Posts: 8656
Warren Buffett: Forget Gold, Buy Stocks
« on: November 02, 2010, 12:29:48 PM »
Article by Ben Stein after having dinner with Buffett.  Cheers!

http://money.cnn.com/2010/10/18/pf/investing/buffett_ben_stein.fortune/index.htm
No man is a failure who has friends!


ERICOPOLY

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 7081
Re: Warren Buffett: Forget Gold, Buy Stocks
« Reply #1 on: November 02, 2010, 01:33:03 PM »
Mr. T is a better source of information on gold:

http://video.forbes.com/fvn/business/mrt-on-gold

broxburnboy

  • Guest
Re: Warren Buffett: Forget Gold, Buy Stocks
« Reply #2 on: November 04, 2010, 06:46:06 AM »
I bet Mr. T bought Ben Stein's scrap gold ... Mr. T. was obviously anticipating the record highs in Gold and Silver immediately after Mr. B's QE2. 
Just like last time (QE1).. the USD dollar goes immediately south against gold.

http://321gold.com/

broxburnboy

  • Guest
Re: Warren Buffett: Forget Gold, Buy Stocks
« Reply #3 on: December 23, 2010, 04:46:12 PM »
Sprott's John Embry weighs in on Munger and WEB's comments re gold:

http://www.sprott.com/Docs/InvestorsDigest/2010/MPLID_112610_pg401Emb.pdf

omagh

  • Lifetime Member
  • Sr. Member
  • *****
  • Posts: 341
Re: Warren Buffett: Forget Gold, Buy Stocks
« Reply #4 on: December 23, 2010, 06:26:14 PM »
In the words of his employer...
http://www.investorsdigestofcanada.com/
One of Canada’s most prominent “gold bugs,” John Embry manages the Sprott Gold & Precious Metals Fund. He brings Investor’s Digest readers a unique and fascinating perspective on the precious metals market.

Embry is obviously talking his book...

-O
Embry says "....I have no objection to Buffett's endorsment of farmland and stocks like Exxon Mobil...."

Is Buffett really endorsing it or just making a point? Who is this Embry? Why is he mis-interpreting what Buffett and Munger said?

merkhet

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2989
Re: Warren Buffett: Forget Gold, Buy Stocks
« Reply #5 on: December 23, 2010, 09:07:02 PM »

Embry is obviously talking his book...


That's certainly true, but I think the Sprott crew is, on the whole, pretty much on the up and up -- though we'd have to be cautious in ferreting out any confirmation biases, etc.

broxburnboy

  • Guest
Re: Warren Buffett: Forget Gold, Buy Stocks
« Reply #6 on: December 24, 2010, 04:51:03 AM »

Embry is obviously talking his book...

-O
Embry says "....I have no objection to Buffett's endorsment of farmland and stocks like Exxon Mobil...."

Is Buffett really endorsing it or just making a point? Who is this Embry? Why is he mis-interpreting what Buffett and Munger said?

Everyone talks their book..especially Buffett himself, although WEB has said that gold has outperformed BRK consistently over the last decade.
Embry is the lead strategist with Sprott group, once the lead investment strategist with a major canadian bank. His legacy funds and indeed the whole group of funds.. the Sprott Hedge fund LP and the Sprott Canadian Equity funds have lit up the scoreboard over the past decade:

http://www.sprott.com/priceperformance.aspx?id=15&t=2

I'm talking my book here as well...have shares in SII (Sprott Inc.), Sprott Resource corp (SCP-T), Sprott Opportunities Hedge fund etc.
« Last Edit: December 24, 2010, 05:34:12 AM by broxburnboy »

merkhet

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2989
Re: Warren Buffett: Forget Gold, Buy Stocks
« Reply #7 on: December 24, 2010, 06:55:14 AM »
Sprott Resource Corp. is probably one of my favorite holdings right now.  (So I guess I'm also talking my book too when it comes to Embry.)  It'll be interesting to see if the gap to NAV closes more rapidly once the 16 million warrant overhang is done with on the 31st.

omagh

  • Lifetime Member
  • Sr. Member
  • *****
  • Posts: 341
Re: Warren Buffett: Forget Gold, Buy Stocks
« Reply #8 on: December 24, 2010, 09:47:52 AM »
merkhet,

Long ago, I realized that I have no special abilities to predict the price of commodities or the price of money (interest rates).  I do have some meagre ability to judge intrinsic values of cash-generating enterprises that have low capital expense requirements.  I stick to my knitting and it serves me well. 

I feel quite liberated ignoring companies that depend on the price of oil, gas, metals and so on -- others may feel they have some special knowledge here.  It allows me to focus on things that matter in my modelling of intrinsic values and where I have some small advantage that outperforms regularly with very rare downside surprises.  Buffett, Graham, Klarman, Templeton, Watsa, and others (the grandmasters) give us examples to study and learn from.  On this board there are many who share regularly and have fantastic ideas.  Some ideas work short term, investing frameworks from those grandmasters work long term.

All the best in your investing journey!

-O

Sprott Resource Corp. is probably one of my favorite holdings right now.  (So I guess I'm also talking my book too when it comes to Embry.)  It'll be interesting to see if the gap to NAV closes more rapidly once the 16 million warrant overhang is done with on the 31st.

bargainman

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 757
Re: Warren Buffett: Forget Gold, Buy Stocks
« Reply #9 on: December 24, 2010, 12:21:07 PM »
Sprott Resource Corp. is probably one of my favorite holdings right now.  (So I guess I'm also talking my book too when it comes to Embry.)  It'll be interesting to see if the gap to NAV closes more rapidly once the 16 million warrant overhang is done with on the 31st.

The only think that I don't like about Sprott Resource is their hedge fund fee arrangement with Sprott Asset management.. It's sounds worse than Biglari's..

"In consideration for providing these services, the Company agreed to pay SCL an annual services fee equal to 2% of the net asset value (as defined in the MSA) of the Company calculated and payable at the end of each calendar quarter based on the average quarter-end net asset value of the Company and an annual incentive fee equal to 20% of: (a) the pre-tax profits of the Company for the year minus (b) the average month-end net asset value of the Company for the year multiplied by the percentage return of the Canadian 30-Year Generic Bond Index. On December 1, 2007, SCL assigned the MSA to SCLP, the successor to SCL, as part of an internal reorganization involving SAM and its subsidiaries. No amount has been included in the above commitments schedule for fees payable under this agreement."