How to Stay Out of Debt: Warren Buffett - Financial Future of American Youth (1999)



Buffett became a billionaire on paper when Berkshire Hathaway began selling class A shares on May 29, 1990, when the market closed at $7,175 a share. More on Warren Buffett: https://www.amazon.com/gp/search?ie=UTF8&tag=tra0c7-20&linkCode=ur2&linkId=9113f36df9f914d370807ba1208bf50b&camp=1789&creative=9325&index=books&keywords=Warren%20Buffett In 1998, in an unusual move, he acquired General Re (Gen Re) for stock. In 2002, Buffett became involved with Maurice R. Greenberg at AIG, with General Re providing reinsurance. On March 15, 2005, AIG's board forced Greenberg to resign from his post as Chairman and CEO under the shadow of criticism from Eliot Spitzer, former attorney general of the state of New York. On February 9, 2006, AIG and the New York State Attorney General's office agreed to a settlement in which AIG would pay a fine of $1.6 billion. In 2010, the federal government settled with Berkshire Hathaway for $92 million in return for the firm avoiding prosecution in an AIG fraud scheme, and undergoing 'corporate governance concessions'. In 2002, Buffett entered in $11 billion worth of forward contracts to deliver U.S. dollars against other currencies. By April 2006, his total gain on these contracts was over $2 billion. In 2006, Buffett announced in June that he gradually would give away 85% of his Berkshire holdings to five foundations in annual gifts of stock, starting in July 2006. The largest contribution would go to the Bill and Melinda Gates Foundation. In 2007, in a letter to shareholders, Buffett announced that he was looking for a younger successor, or perhaps successors, to run his investment business. Buffett had previously selected Lou Simpson, who runs investments at Geico, to fill that role. However, Simpson is only six years younger than Buffett. Buffett ran into criticism during the subprime crisis of 2007--2008, part of the late 2000s recession, that he had allocated capital too early resulting in suboptimal deals. "Buy American. I am." he wrote for an opinion piece published in the New York Times in 2008. Buffett has called the 2007--present downturn in the financial sector "poetic justice". Buffett's Berkshire Hathaway suffered a 77% drop in earnings during Q3 2008 and several of his recent deals appear to be running into large mark-to-market losses. Berkshire Hathaway acquired 10% perpetual preferred stock of Goldman Sachs. Some of Buffett's Index put options (European exercise at expiry only) that he wrote (sold) are currently running around $6.73 billion mark-to-market losses. The scale of the potential loss prompted the SEC to demand that Berkshire produce, "a more robust disclosure" of factors used to value the contracts. Buffett also helped Dow Chemical pay for its $18.8 billion takeover of Rohm & Haas. He thus became the single largest shareholder in the enlarged group with his Berkshire Hathaway, which provided $3 billion, underlining his instrumental role during the current crisis in debt and equity markets. In 2008, Buffett became the richest man in the world, with a total net worth estimated at $62 billion by Forbes and at $58 billion by Yahoo, dethroning Bill Gates, who had been number one on the Forbes list for 13 consecutive years. In 2009, Gates regained the position of number one on the Forbes list, with Buffett second. Their values have dropped to $40 billion and $37 billion, respectively, Buffett having lost $25 billion in 12 months during 2008/2009, according to Forbes. In October 2008, the media reported that Warren Buffett had agreed to buy General Electric (GE) preferred stock. The operation included extra special incentives: he received an option to buy 3 billion GE at $22.25 in the next five years, and also received a 10% dividend (callable within three years). In February 2009, Buffett sold some of the Procter & Gamble Co, and Johnson & Johnson shares from his portfolio. In addition to suggestions of mistiming, questions have been raised as to the wisdom in keeping some of Berkshire's major holdings, including The Coca-Cola Company (NYSE:KO) which in 1998 peaked at $86. Buffett discussed the difficulties of knowing when to sell in the company's 2004 annual report: That may seem easy to do when one looks through an always-clean, rear-view mirror. Unfortunately, however, it's the windshield through which investors must peer, and that glass is invariably fogged. http://en.wikipedia.org/wiki/Warren_Buffett

Comments

  1. Don't pay for trash pickup. Take it to the dump yourself. I pay 19 every three months. The garbage is sealed well.

    Join the least expensive gym you can join. I pay 20 a month. Working out is a good plan for staving off aches and pains as you age.

    Stay out of debt. Period.

    If you can't pay it in cash, don't buy it.

    Pay off all credit cards, then don't use them.

    It's not what you make, it's what you spend.

    Keep any car you own a minimum of ten years.

    Save 15% of your income in pretax investment thru work.

    Fund a ROTH fully 5500.

    Build an emergency fund that will last 3-6 months.

    Set everything up automatically and let it GROW!
  2. Excellent!
  3. superbowl knowledge from a cartoon aspect is official game just some dont make the league
  4. I wonder in which way this talk would differ today vs 1999.
  5. save money and live modestly. if everybody do this, the economy will never growth. and you mr. buffet will never get profit, so shut the fuck up.
  6. How i be come millioner,? even slipper or shoes i cannot buy my own.!" Even one item panty i cannot buy.
  7. Thats true.i am normal girl, but my own character to being person is morethan normal.i have no million credit to my life.
  8. Warren Buffett Disowns Granddaughter
    “I have not emotionally or legally adopted you as a grandchild, nor have the rest of my family adopted you as a niece or a cousin.” Nicole was devastated. “He signed the letter ‘Warren,'” she says. “I have a card from him just a year earlier that’s signed ‘Grandpa.'”
    Reply
  9. I agree Mad Flavor -- live below your means...and take pride in doing so :)
  10. Warren Buffet - ''There's Class Warfare, But It's The Rich Class, Making War, And We're Winning''
    WE will SEE.
  11. these stupid subtitles these videos have! -almost every line has a hilarious error.
  12. Don't believe what this guy says. We live in a debt based system. Warren Buffett got rich by piling up debt on debt on debt. His whole empire is based on debt. Search on youtube for Robert Kiyosaki's "Good" Debt and Bad Debt videos. Not that the "Good" debt of Robert Kiyosaki is actually morally good debt. Cause you help to crash society with it, because of money creation out of nothing and the component of interest in relation to that. The exponential function will eventually make an end to the ponzi scheme, which the present monetary system is.
  13. Блиин, как жалко, что нет на русском нормальных субтитров хотя бы! Раз название на русском, я подумала, естественно, что будет на русском языке.
  14. xxxxx
  15. I love the head start analogy with the 100 yard dash race, so true
  16. This guy is awfully wise.
  17. King you lap s
  18. what is most remarkable about this talk is NOT 1. his advice on debt, which everyone who isnt an idiot knows 2. value of human capital and striving to do what you enjoy 3. value of money.. 4. etc etc, THE MOST AMAZING thing is this video is 1999 talk and he is talking about technology transformation like he knew what 2017 is today, with uber, amazon, day trading, teleconference, cloud computing... not bad for an old man that is humble to say he is like a chimp when bill gates is explaining the future to him. NOW, this demonstrates why he is a mega billionaire and WHY he is a VALUE Long term investor... he GETS IT. he can see the future is in any industry and is not a stubborn bastard like your typical rough neck or jock... it just shows how the mind of a brilliant investor works... lets not mention tesla, artificial intelligence, space tourism, digital printing, virtual reality. to american capitalism spirit

    he missed the corrupt banking system and the financial crash, dodgy mortgages and property bubble, 911 and terrorism.. and QE.. donald trump..but for a value investor you look at change and put your money in companies that will be the biggest part of that revolution
  19. i enjoy listening to a wise man
  20. Answer: don't aquire it in the first place. There, just saved you an hour


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Visibility: 1815598

Duration: 59m 40s

Rating: 10794