The reasoning behind getting into hugely capital intensive businesses like electric utilities and railroads has been to find places to invest all that $BRK money, how does that not create value and serve society?
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Doesn't surprise me at all that he likes those businesses. He's always been a monopolist and a crony capitalist and those businesses are both. Government guaranteed returns for utilities, and who can forget the massive land grants to subsidize the railroads. He's duping people!
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So true. But he tends to get sweet heart deals by Wall Street too. Look at the BAC conv prefs...
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He is a usurer to the usurers, and basically runs an institutional pawn shop.
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The same could be said of all investors. None of us create any value other than supplying capital which is a commodity. And that includes VC, no matter what they might claim.
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Yeah agreed. Even Munger laments all the smart people wasting their lives trading paper.
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Maybe at the corporate level by Buffett himself. but the twining of rails at bnsf or the growth in energy production by bhe is surely value creation. I believe sees candy is even growing store count.
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He's a monopolist and crony capitalist so it makes sense he's into the railroad and utility businesses. The utility cos get state guaranteed returns and the railroad is a rent seeker profiting off subsidization from big land grants. He's suckling value off society 4 himself.
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Do you think it is so because of the businesses BRK owns, for instance insurance doesn’t add much value to society, or because Buffett as the owner of those businesses doesn’t add real value?
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The latter.
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