Warren Buffett On The 2008 Crisis
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- čas přidán 11. 09. 2018
- When the banks began to fail in 2008, executives turned to Warren Buffett in a plea for last-minute funding. He later called the events that followed an "economic Pearl Harbor."
Watch the premiere of the CNBC Original “Crisis On Wall Street: The Week That Shook The World” Wednesday, Sept.12 at 10pm ET/PT.
Ten years after the fall of Lehman Brothers, CNBC has produced the definitive televised account of the historic bankruptcy and cascade of events over a September weekend in 2008 that led to the worst financial crisis in generations. In this prime time original documentary, Andrew Ross Sorkin, CNBC anchor and author of the groundbreaking best-seller "Too Big to Fail," reports on how the nation and the world came as close as ever to a full economic collapse.
The story is told through gripping interviews with those at the highest reaches of the U.S. government as well as the CEOs of the nation’s largest banks who gathered to try to save Lehman Brothers from failure. Wall Street chiefs Jamie Dimon, John Thain, and others describe dramatic, around-the-clock negotiations. Former U.S. Secretary of the Treasury Hank Paulson tells of the desperate moment when he realized that a Lehman bankruptcy could bring down the world’s financial system.
Could a financial crisis of this magnitude happen again? Sorkin puts that question time and again to the people gathered for this CNBC documentary, who shouldered the fate of the world’s finances and who recall the nightmare scenario they faced down ten years ago.
"It would be breadlines across the country for a generation,” former president of the N.Y. Federal Reserve Tim Geithner told Sorkin. “We did feel that we were making choices and faced with outcomes that would be devastating to the lives of hundreds of millions of people."
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Warren Buffett On The 2008 Crisis | CNBC
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In 2007 a friend of mine called and suggested i buy a house in Arizona - i said i don't have the money for a down payment on a home like that. He said don't worry, they will add 10% to the cost of the house for you, and give you back the 10% so you do have the down payment. I said that doesn't make any sense to me, how will that work? he said it will work just fine since your house will go up in value in six months and you will be fine, you can even sell that house after 2 years and make a profit. Luckily i said NO i am not going to take that chance, he lost everything he had ever made a year later, and his marriage and his kids left with her. i still feel like i dodged a big bullet. Too good to be true is always a good guide.
@PhyZeik i don't know but he lost everything he ever cared about
R. B.L. Good man. I had a similar experience myself after watching my older brother and his wife (whom at the time weren’t even brining in 6 figures combined) buy a house. I was curious how they could afford such a deal (this was 2005). A year later, I’m doing well, few years out of undergrad and curious how so many people around me are buying homes, settling down (and only making what was back then a few years out of school). By 2009, all but one of them kept their home and made it through. The rest (including my brother), lost their homes and everything they bought leveraging against the home itself. As you said: too good to be true, it almost always is....
@@stevedcase @R. B. L. you shouldn't blame your brother/friend too much - listen to Buffet @14:12 - people are trying to make money and they are not experts in the field really. I didn't get caught up in it (thankfully) but the economy is still recovering especially if you worked for wholesale lenders whose business went off the cliff edge.
@@r.b.l.5841 what he is doing now?
@@xoxo-sf1zg he lost his job and ended up divorced and lives with a relative now (petty sad acutally) i think he got depressed and was losing hope had a lot of problems getting back to work
“Confidence comes back one at a time. Fear is instantaneous.” 🤔
🙄
“Asset appreciation, it attracts everyone. You don’t understand it. But your neighbor who you think is dumber than you is getting rich so your spouse needles you to take part in it too.” - WB
My god. That is the essence of it.
amit nagpal envy is one of the seven deadly sons
I'm not going to have any sons, man. They'll destroy your life. 😉
Always the nagging wife!
Did he just describe 2017's Bitcoin?
I have nothing against Bitcoin, but this is the same feeling I get with a lot of the people who do get in it without really knowing what it is
9:55 - “Yeah, when Goldman Sachs calls needing money, you’ll remember it.” - WB
wow......just wow.
How powerful this man is
😶
exactly !
2008 was the worst year of my life, it started with my mother getting very ill, I broke the bones in my knee, my wife divorced me, I struggled to keep my home after hemorrhaging from my divorce, gas price were insanely high and all of my investment tanked. I felt like I was going to end up poor. My life is so much better today. I hope that never happens in my life time.
What was your portfolio made up of at the time, and what did you do? Struggle through and sit it out?
The financial downturn part almost definitely will. I guess that's why diversification is so popular, including bonds and even precious metals and (real) real estate.
I was heavily invested in stocks. I did nothing for many years and it slowly came back. A few years ago I married a wealthy Wall Street attorney who diversified my portfolio. Life is truly crazy. One day your down and the next you are up. Or the other way around.
@@mtadams2009 buy gold and silver and bitcoin
@@theshowman1000 Not bitcoin. Definitely gold.
One of the cool things about WB is that he's been pursuing stocks/businesses at 7 yrs of age....so he ha almost a century of experience and definite +10,000 hours. And he remembers numbers easily. What I'm trying to say that with all that, no Wall street executive/mgmt can "trick" WB into buying anything b/c he knows the companies numbers better than they probably do. Crazy.
10000 hours is nothing people have that in video games he must have 100,000 hours
He probably has over 50 hours a week, times 52 weeks times 80 years.
Mr Buffet has over 200,000 hours of experience analyzing and studying the finances of companies.
@@digolaverdad7313 At this level of corporate elitism (not being used negatively) you are working 80 hrs a week minimum
@@TheNBSPerry Considering the typical sterotype of a high-level CEO, one that hardly does any "real" work, this is quite an eye opener. It takes real skill and awareness to get the level of Mr. Buffet.
He has a simple strategy. If he does not understand it, he doesn't invest in it. We could all learn a lo from that.
2008- "the housing market only will go up"
2021- "stonks only go up"
sink or swim.
Short then
It’s better to short now with more upside at this point
Strange when you listen to Warren the opposite happens and he gets richer. Also he doesn't take the bait in The Mousetrap. If it looks too good it probably is. I was out selling Fannie Mae's and Billie Mac's not even realizing what I was doing.
I think most people ran out of cash to buy buy buy
"Back in 1929, if you remember..." 😂
Well Warren doesn't either lol
LOL
he's referring to the great depression. he hadn't even been born yet.
In 2005 I was in real estate. As I watched the market I wondered how in the heck could a young couple possibly purchase their first entry home at the prices of that day. I soon put my house up for sale. I had purchased it for 65K in 1994 and listed it for 187K. It sold for 186K. Then you- know- what hit the fan starting in 2007. FIVE years after I sold my house it was back on the market - as a foreclosure - (the buyer didn't make a single mortgage payment!) - listed at SIXTY -TWO THOUSAND!!! ....and it sold. NOW it's back up to 200K !!!
So buy back your home ... homie
This is why I hate how America handles zoning and residential properties. As a person in real estate, should I ever actually buy? I feel like renting is only ever safer and responsible.
Imagine if he bought back his house. And said to his neighbors "na I just want on vacation I'm back". Lol
@@Kyle_Schaff renting with an increase in rent every time you renew your lease no thanks.
@@Kyle_Schaff rents will double in 10 years. Home expenses, including mortgage and taxes and repairs, will only go up maybe 20%.
A man with intellect that the biggest brains and average persons can understand is truly generational. Mr Buffett is someone when you mature you never want to forget his simple explanations of how the financial system works. My brother in law went down to Omaha about 20 years ago for the annual meeting courtesy from the financial firm he worked for and said he was the most laid back friendly guy you could imagine. A Killer whale amongst sharks in a sea of predators.
Totally agree
He's definitely smart, but probably not a "genius". He has a healthy mixture of intelligence, discipline, wisdom, and LUCK. Intelligence is a lot more powerful when it is combined with the right knowledge, and the right kind of willpower or work ethic.
What did he invented or make the world better no. Look at Elon musk
@@brandonbarr2784 Well, then you keep quiet and idolizing Elon Musk though. First of all, At the end of a question should be a Question Mark. Secondly, What did Elon INVENTED anyway i wonder?
@@brandonbarr2784 He has donated billions of his wealth as well as pledged to give away the vast majority to philanthropy once he passes away so that is what he has done and will do for the world...
“I’d love to have short sellers in Berkshire” - Warren Buffett
what did he mean by that?
Berkshire does share buybacks when they think the price is below its true value. So he might mean that he could take advantage of short sellers pushing the price down, because he would still be confident that his company has solid value. So his point is that it's not the short sellers that are the problem, it's your company.
he challenging short seller to short Berkshire share, which the risk is too high even the Berkshire share jump just 1%... in September 2018, the Berkshire stock goes from 320k to 311k and up to 331k on November... you see the risk? lol
Watching this in 2021 knowing this is going to happen any day again.
be ready to buy up! choochoo!
Evergrande
You're missing the main part of the equation - subprime mortgages. The current real estate market isn't going to crash.
@@ghostmane2643 you're missing the main part. Artificially inflated mortgages by the government, by the lenders, by the appraisers, and by the investors. They may not be lending to people with no jobs. But we are one Financial crisis/layoff away from everyone who just bought a house in the last two years losing it. Everyone who was promised by their lenders they'd be able to re finance. And everyone who overbid by 50k expecting to be able to gain equity in two years.
@@ghostmane2643 the lead up is much different, but the result will be the same. And when it hits. It's bigger.
More or like this. During a stock market bubble in my country, my mom asked my dad about it. She didn't needle him or something. Just asked. My dad who only finished high school and was a government employee, said that he does not know exactly what this is, how people are making money and why people are taking up loans in order to invest in the stock market. None of this makes sense and this is not for us. We do not have extra money to play with, and if we did, there are better ways to play with that I understand better and I would rather go there.
6 months later the stock market crashed, everyone lost their money, people lost homes (because they used them as collateral for investment loans) etc. We all of a sudden, where the "rich" family in the block. Because we just did not go following something we had no idea what it was.
Now, I know what stocks are, I know how to invest etc, but still, that stuck with me. I only use money I have to play with, nothing more, nothing less. Even if I see a huge and amazing opportunity (the crash of 2020) I will not put in more money I can afford to lose and "recover later". I lost on "possible profits" by doing this, but I also avoided "possible losses".
Either educate yourself on what you are doing, or don't do it at all.
Moral of the story - if Hank Paulson calls - hang up. Always enjoy interviews with Mr Buffet
"Are you worried about another crisis?"
This guy clearly doesn't get Warren Buffet. Warren loves the idea of a crisis. It means he'll be the only guy with cash at a yard sale.
No
You'll quickly become a hoarder with that mentality in today's market.
He did once say that when they call you on Sunday, that's when you know they'll make money because they have a problem that has to be settled that day. He did help bailout I forget which bank by buying stocks with leverage and profited massively from the rebound. However, Buffet was also holding onto real world assets that were hit by the bubble, so it's impossible to say if he has a net loss or gain from any given crash.
@@samsonsoturian6013 Goldman Sachs
this guy is so good. can't believe his idea is what put a halt on the 2008 crisis.
In essence and at it's TRUE foundation within this debacle Charlie Munger stated, "human folly".
"confidence comes back one at a time...but fear is instantaneous" --that quote is so fitting especially with how the dow keeps dropping with the corona virus. lol...
In the Netherlands we have a saying that 'trust comes on foot but leaves on horseback'. That is the way it is.
Reminds me of a Ramsey quote. “Bulls climb the stairs, bears come out of the window.m
I suddenly remember an adventurous old man in "up" movie
@avalanchesoul drinks a lot of Coke
@@krismine99 Ronald McDonald's for breakfast
Master Genius ..
thank you
When people experience fear it sears something in them, he understands human nature
this is a golden sentence: "how does a short seller hurt you?" (3:58). Thanks for uploading it!
Warren Buffet is the greatest Financial Wizard of all time
You're right. He and the rest of the market movers stole the average americans money. They destroyed the economy. Sold shorts on the way down and gobbled up the small players at the bottom before heading back up. Dont think these POS hedge fund managers cant move markets. They can and they will
John C. Bogle
Greed, people lent to people with no way of paying them back coz: commission on quota
Not a bad interviewer at all (very patient and waiting for the full answer), but Becky Quick is my favourite person to interview Warren.
Tommy Carstensen For obvious reasons amirite
Not Joe =)
She really is so professional, probably one of the best two on all of television, her and Chris Wallace
@@Light-vu6ws she wears the shortest of skirts to show her legs
you know you made it when the bank calls you for a loan LOL
Exactly!
Ironic how Buffett, a big investor in Moody's (one of the rating agencies that sold the positive ratings on subprime bonds that allowed the crisis to happen), can come off as sincere when talking about the crisis.
12:38 to 12:43 - Can someone please explain when he says, "Everyone wants to deleverage, there's only one party (presumably the government?) who can leverage up." - What does this mean?
@@loveanimals-0197 when everyone wants to deleverage; as in sell assets to pay off debt, only the government has the money/will power to buy assets and get into debt
@@HuiChen03 Thank you!
You don’t understand how he runs BH
He took a 75% hit on that stock and explained during his congressional hearing that he didn’t see it in the books. Had he known about it he would have never taken the loss.
For example he saw what Bank of America was doing in the subprime market and he dumped them right away.
One of the wisests and smartests men alive.
Rating agencies were negligent - other bad actors could not have behaved badly if rating agencies had done their job
It wasn't negligence. It was corruption. Give us the rating or we take our business to an agency that will. There was too much money to turn down when the other agencies were playing ball.
American rating agencies are the biggest hoax in history. They are owned by those who are rated... how's that for a laugh!
The problem is, rating agencies are not government agencies, they get paid the same way banks do. A client pays them to rate their product, which by its very nature is a conflict of interest. If you work for a rating agency, you want your paycheck no more than anyone else. Rating agencies should be government agencies, they have oversight AND have income that would not come from those who that regulate and rate.
But I think the bigger problem is if we gave them the benefit of the doubt. If their fundamentals were so correct - then why is it so flawed? The answer is that their fundamentals were never that solid, to begin with. It just goes to show that if you want to test the resilience of a company - you have to see how they handle punches.
Rating agencies had no prior experience to evaluate the risks of these subprime mortgages, as opposed to traditional mortgages that have been around for generations. As someone once said, it's like trying to predict the weather in Hawaii with 100 years of weather data from Alaska.
Dạ Rất Cảm Ơn. Được Lắng Nghe Các Quý Vị 💚
Such a lovely man
Warren Buffett is simply a great man.
Sam Yaza yes he is
@@Kodakcompactdisc no, he isn't
@@michaelbarbarich3965 yes he is
@@sleepless2541 no he isn't
this man has seen crisis a lot more and even buying into crisis. surely such a master
Smart man. He should run the FRB. More honest than Greenspan.
Warren Buffet a real BOI
Piety such great wisdom will go down the grave someday...how will Beckshire survive without WB?I hope it has for itself a Tim Cook.
Buffett: " congress is the one that scared me......"
And to this exact day, they still continue to do that
Hey look, it's me!
@@krismine99 👋
9:55 priceless 🤣🤣🤣 “when Goldman Sachs needs money, you remember it”
5:15 I whish Warren could have been more specific on this question. I want to know which points on the 10k report he had problems with.
Historically, when a bubble bursts it takes two years to hit the bottom.
Where did you get that two years number? Average length of recession in recent years lasts for 17.5 months or 1.5 years according to Forbes.
The bubble bursted after Lehman failed September 15, 2008. The worst of the Recession was, like, summer 2009 if my memory serves. That’s only around half a year, dog.
I am glad that Warren Buffett was not Fed Chairman because a bigger bailout performed on the spot to avoid the Lehman meltdown would have avoided a necessary purge of bad investments and bad behavior. Looking at it now the survivors are better off and a lot of necessary restructuring took place.
Ya but sadly the main fix was quantative easing. Just printing more money didn't fix the problem. Heck 3 weeks ago front page of my paper said housing at all time high prices in value. I see it coming. I can't see when. But it will come
@@BobSmith-lw9to appreciation will/is happening- but the amount of leveraging that happened in 2008 can't happen again. Next crisis will be caused by these non-bank lenders and grey market money (think Lendingtree for example). Especially with rates dropping and there being less of a market to invest.
Agree in general, but how do you feel about a general economy-wide bailout (like we have right now)? The stimulus could prop up companies that otherwise would be "pruned" and gone under during a recession.
@@wlee9888 I suggest people should invest in companies with good fundamentals that didn't need to get bailout money. Technical analysis doesn't make a lot of sense anymore, at least to me.
That's pure gold 🥇
03:43 Pause, bruh.
Get on board.
Hindsight 2020
Not so much. We do have stock option for the buyer withdraw from principal. They will earn on the put option.
Only Warren would call the global financial crisis a “hiccup” 😂😂
That's what it was. It's not like anyone remembers the railroad mania, and that was bigger.
look at a stock chart dude. look whats happened since 2008... a hiccup. it was the best buying opportunity of all time. there might not be another one for 50 years. it was a blessing.
@@bobmcgee1202 you must have wealth. I was a struggling single mother whose wages were stagnant for a decade following the crisis. The US banking system devestated some countries by selling off their junk..knowingly. And we have a "Golden Calf" sitting outside of Wall Street...
God and "blessings" are no where inside of Wall Street my dude
Mr Buffett`s analysis is brilliant and timeless. Here in 2024 people are going to gold and silver and it seems like they are ready to panic again. Greed and bad government policy unfortunately is still with us.
Anyone have a link I can watch the full documentary? Pls help
Gold at highs..
This gentleman is a genius but I would have stopped work 20 years ago if I were him!
yea, he quit working when he was about 30; its all downhill from there.
He doesn't really work anymore. Yes he is still CEO, but he has said himself that he only does what he wants to do. His executives do the work for him.
Kodiak and Grizzly Bears that’s why you’re you and Buffett’s Buffet.
Being rich doesn’t stop you, it just makes it easier to do what you like, men must have purpose/aims aimlessness is a sin
He loves the game. Watch the documentary on him.
12:38 to 12:43 - Can someone please explain when he says, "Everyone wants to deleverage, there's only one party (presumably the government?) who can leverage up." - What does this mean?
Fictive example. If a bank has a deposit of 10 Dollar and expects clients to only retrieve 1 dollar on average at any given time, they can lend out 9 dollar. In this scenario, they only keep 10% reserves. That 9 dollar is used to pay other people. Imagine that the people who get paid 9 dollar deposit the money at the same bank, then the bank has 19 dollar at that time in deposits. This cycle continues and so the money supply lent was 10 times the amount of original deposits. In this example of 10% reserves, the deposits would be leveraged by factor 10. This would mean that the bank has 10 dollar in deposits and 100 dollar lent out. Delevaraging would be to decrease the % of amount of money lent compared to the amount of deposits. This would decrease the money supply in the economy.
In normal financial times, other banks or investors would buy the loans if a certain bank wanted to deleverage. In 2008 everyone tried to deleverage at the same time. The only one that could buy the loans to allow the bank to deleverage would be the Federal reserve. In that case, the federal reserve would buy some of the loans and give cash instead. In 2008 the Fed was not allowed to do this yet, which is why it had to be approved by congress.
Natural deleveraging would happen when a loan is paid off and the bank doesn't relent the same amount of money but keeps the deposits. Since loans are long term, this would take to happen naturally.
Today the fed has more mandate to buy government bonds or hold bonds for a shorter amount of time as collateral (Repo operations). There are even propositions in the works which would increase the feds mandate to be able to buy or hold different asset classes (example: corporate bonds). This would basically be a bail out of big companies, which is likely to be needed if the Covid 19 virus persists for an extended duration. Hopefully this clarifies it.
@@bartsplaylists Thank you very much for the detailed answer. Much appreciated!
How warren really feel about 2008
"Had to secure the bag, I smelled a lick, Had to hit it, yall goofy, I ran the check up, yall fools , GANG, p.s free freddie mack n fannie mae"
dj ak lol, you can't say that 😁!
AKA DA AKA lmfao 🤣 that’s why wb a living legend
“The guy next door, who is getting rich, is dumber than they are.” - Gold
Wait, is that quote by gold (the precious metal) or that quote itself is gold?
@@taimalik1110 your comment is totally underrated 🤣
The best part is after the bail out the bankers payed bonuses to themself as a "good job done"... man thats CRAZY !!
Well they did a good job just not the normal folk on the street but themselves. Which industry where it's executives can screwed so badly and yet have to be bailed because they threaten to bring the rest of the world along into deep hole. And yet this is not a crime ? Ridiculous isn't it ?
Criminality is only for the poor.
Sadly I have difficulties understanding him because fore sure the guy has some interesting stories to tell.
Too many people think they are 'rich' lauding the equity in their properties without two cents to rub together.
Buffet is one of most respected men in OMAHA and New York, he is " no nonsense" and doesn't like to accept foreign risk. He LOVES free and clear, and LOVES his wife.
You can make a book of fantastic quotes everytime he talks.
“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”
No income.No job. No assets. NINIJA.- - No problem. .. .I was 50 years old. I made 25.000. .I Was told I quaified for. $ 300,000 mortgage. .I laughed. .I wet my pants Laughing. .
"I think if I was chairman of the Fed.."
pls sir jerome hurts
Jerome is fine. You'd whine about Buffet if he was in the Fed too.
Me when someone asks me who's your favourite artist: 5:43
My 2008 crisis is still going on, you can't beat a person who never quits. Babe Ruth
Ha. All effects were gone by 2012 regardless of metric used.
I did love to have short sellers in brekshire . That confidence
He pays himself and investors by buying back shares in his own company. Short sellers just make that cheaper.
The housing collapse in the late 90s was way deeper than in 2008...but Wall St took a nice deep spill.
I'm a CPA...these accounting practices are unethical at best and disingenuous and criminal at worst.
Warren Buffet has Diamond Hands. I am ultra short the market as of MAR 2021.
Your puts expired worthless.
@@samsonsoturian6013 NO. I sold calls. I had to keep rolling them and I bought them to close in June 2022 with a huge profit. I can now retire early thanks to those calls.
1:06 - Yeah... Some of those products were sold to small norwegian counties and had huge effects on small city funds...
Hva het den saken igjen? Kommunen eller selskapet som tradet
@@Matsoni85 Terra-skandalen 🙃
The kids always call grandpa when they run into trouble lol.
Should these businesses have been allowed to fail ?
"short sellers dont hurt companies" I wish he would have explained that comment. I know shorts have to rebuy to close positions, but sometimes not till it hits ten cents
Shorts and longs only increase liquidity in either direction. If Efficient Market Hypothesis applies, then the price in the long run cannot be manipulated, because manipulation would have a prohibitive cost and the manipulator would keep losing money until they can't do it anymore. So shorts would 'hurt' the company if it was overvalued in the first place, by bringing it back to its actual price. Buffet is subtly saying that people who complain about short sellers are actually signalling that they are in an overvalued position.
I think it was kind of a joke because he would just buy more if they drove the price down...hence he would welcome it
Love Warren ao much
Maybe thats gonna happen to crypto. Same confidence people had in real estate - that it can never go down or zero / land is finite , Its useful.
And too many people got into this and none knew the use of it.. Looking for experts of crypto to comment!
15:42
Asset appreciation draws in people that really don't know anything about the asset, and people start being interested in something coz it's going up, not because they understand or anything else.
But the guy next door who they know is dumber than they are is getting rich and they aren't. And their spouse is saying .. you know, can't you figure it out too? I mean it's so contagious, so that's a permanent part of the system. - WB
Thank The Fed
This man is 90 years old 😯
Earlier there is positivity note on investors to grab the Stocks on Bear Mode.. or Market correction...Now No
New IPO issues to enter into Secondary Market..Vacant..Vacant..Vacant
And houses in San Diego are now three times tje price they were in 2007 for example.
9:27 he has his eyes on buffet "pause" at 9:27
No. Not everyone behaved badly! People who saved money in their 401K and paid their mortgage lost and ended up with the tax bill for the bail out with their house depreciated.
Hank Paulson called me yesterday to extend my car warranty.
And we have the executive watch over the nation businesses
In 2008, I was in senior year. Thanks for fuming this up when I start my career. I've got this chip on my shoulder.
Too many people bought a house they couldn’t afford, and many didn’t have to put anything down, a receipt for disaster.
Asset appreciation draws in people that don’t know anything about the asset…very profound
Haunting predictions.
Lehman's downfall was beyond redemption!It was for the good of the world that it fell even though families paid the price
People used Housing as PAY INCREASES as private companies gave 1-2 % wage increases every 5 yrs ate into inflation. Housing was an UNTAPPED cash cow.!! The RE_INSURERS got screwed. then everyone else did!! Buffet is Huge in RE-Insuring debt.
his comments on fear are insightful, affirmed again in people and government responses to covid.
This CNBC reporter has not aged a day since then
Very appropo with Robinhood today
Will we have a similar one in the near future?
One of the very few billionaires that is worth his salt.
As much as I like Warren Buffett sometimes he appears to make sense "his way" but that's not necessarily sense although people take it that way because he has a nice way of putting his point across. Bottom line is this: a growth stock tends to be in fledgling companies that are young with plenty of room for growth. Value stocks tend to be mature companies that are mature and just basically like an old man just doing nothing but collecting a pension. They churn out dividends every six months or so because they have a steady business. Buffett's not wrong but my explanation is how most people see growth vs value stocks.
9:47
The people holding more shares and make more monies from the stock sale if they did not buy back 70% of the volume at low prices then they did abandon the companies.
It all comes down to Greed and there's a lot of blame to go around . I the end it was a golden opportunity for the wealthy to gain wealth on the decline of property values . The mortgage industry made massive amounts of commissions on property loans that were set up to fail to people who qualified for low adjustable mortgag rates. As I stated there a lot of blame to go around, but I think Was the beginning
He never answers a question... smart