Buffetts World

[41chevy]

Investor Warren Buffett says the United States' economy is in much better shape than the presidential candidates make it seem.

Buffett said Saturday in his annual letter to Berkshire Hathaway shareholders that any baby born in the country today will live better than their parents, even with the current economic growth.
"It's an election year, and candidates can’t stop speaking about our country's few problems (which, of course, only they can solve)," he writes. "As a result of this negative drumbeat, many Americans now believe that their children will not live as well as they themselves do.
"That view is dead wrong: The babies being born in America today are the luckiest crop in history."

Buffett did not single out any presidential candidates by name. The billionaire in December officially threw his backing behind Democrat Hillary Clinton"During presidential elections where no incumbent is running, both sides who are running for president always say they are the ones to solve the nation's problems and point out what those problems are," Bill Smead, who invests $2.1 billion at Smead Capital Management in Seattle, told Reuters.

Republican presidential candidate Donald Trump, who won New Jersey Gov. Chris Christie's endorsement on Friday, has offered a bleak assessment of the economy, repeatedly saying it is in a "bubble" that he hopes will pop before he takes office. "I don't want to inherit all this stuff," Trump has said.
In his letter, Buffett notes that there will still be large scale world wide economic disruption, unemployment and pain along the way as business evolves, but the country (USA) needs to make sure it has a solid safety net of long term unemployment insurance,healthcare, food, heat and rent assistance to help people who lose jobs.
Buffett pointed out that change also creates challenges for businesses. For instance, its BNSF railroad is certain to haul less coal in the future but more oil and Geico insurance could be hurt by driverless cars.

I have a few simple questions from a plain old working man for Mr Buffett...

Any child born now in the U.S. will have a Federal deficit of 20 trillion dollars to pay off, and an unfunded debt of over 100 trillion dollars. Now, what kind of future is that?

And the Economy?

Baltic dry index is at record low, oil is at around $30 per barrel ( high supply due to lower demand worldwide in global economy), many American workers are employed less than forty hours per week , record numbers on some form of government assistance, heath care now is just an expensive piece of paper with a outrageously high deductible for the fully employed and the stock market has had a terrible first two months, business are scaling back or moving out of the U.S. over tax rates. This is a strong economy?

[RedBullDog]

For him it is.

[grayhair]

Don't be fooled by this kindly old grandfather figure who is really a smiling crocodile.

He is into corporate welfare up to his eyeballs starting with Ethanol. Ethanol moves by rail, not by pipeline. His railroad BNSF carries much of it. Without federal subsidies the ethanol business dries up. And he really doesn't want anybody looking into insurance business practices and competition either. And he sure as hell doesn't want a flat tax. He benefits greatly from carried interest tax loopholes.

It's funny, the libs always talk about doing away with corporate welfare, but such talk is so disingenuous on their part. No way they will mess with this guy.

[theakerstwo]

Some one would have to be silly to believe any thing he says.

[mowerman]

lol....another out of touch idiot,,,,that thinks this place is the utopia......ooooh yaaaaaaa!!!!!!!!probably is for him....bob

[Mack458]

Mr.Buffet has worked for his wealth, unlike Trump who inherited his wealth or borrowed a "small amount of money" from his father (1 Million). Buffet admits that he pays less in taxes that his administrative assistant, and want the government to change that. He will, along with Gates, eventually donate all of his money away. I don't see Mr. Trump ever doing that.

I'll take Buffet's opinion over Trump's any day. His opinion may be overly optimistic, but I rather hear that then "the sky is falling". Buffet statement also includes a lifetime of experience in investing and looking at future trends. Although no one can see into the future it is refreshing to hear someone say that they believe that the future will be better.

[carlotpilot]

Investor Warren Buffett says the United States' economy is in much better shape than the presidential candidates make it seem.

Buffett said Saturday in his annual letter to Berkshire Hathaway shareholders that any baby born in the country today will live better than their parents, even with the current economic growth.

"It's an election year, and candidates can’t stop speaking about our country's few problems (which, of course, only they can solve)," he writes. "As a result of this negative drumbeat, many Americans now believe that their children will not live as well as they themselves do.

"That view is dead wrong: The babies being born in America today are the luckiest crop in history."

Buffett did not single out any presidential candidates by name. The billionaire in December officially threw his backing behind Democrat Hillary Clinton"During presidential elections where no incumbent is running, both sides who are running for president always say they are the ones to solve the nation's problems and point out what those problems are," Bill Smead, who invests $2.1 billion at Smead Capital Management in Seattle, told Reuters.

Republican presidential candidate Donald Trump, who won New Jersey Gov. Chris Christie's endorsement on Friday, has offered a bleak assessment of the economy, repeatedly saying it is in a "bubble" that he hopes will pop before he takes office. "I don't want to inherit all this stuff," Trump has said.

In his letter, Buffett notes that there will still be large scale world wide economic disruption, unemployment and pain along the way as business evolves, but the country (USA) needs to make sure it has a solid safety net of long term unemployment insurance,healthcare, food, heat and rent assistance to help people who lose jobs.

Buffett pointed out that change also creates challenges for businesses. For instance, its BNSF railroad is certain to haul less coal in the future but more oil and Geico insurance could be hurt by driverless cars.

I have a few simple questions from a plain old working man for Mr Buffett...

Any child born now in the U.S. will have a Federal deficit of 20 trillion dollars to pay off, and an unfunded debt of over 100 trillion dollars. Now, what kind of future is that?

And the Economy?

Baltic dry index is at record low, oil is at around $30 per barrel ( high supply due to lower demand worldwide in global economy), many American workers are employed less than forty hours per week , record numbers on some form of government assistance, heath care now is just an expensive piece of paper with a outrageously high deductible for the fully employed and the stock market has had a terrible first two months, business are scaling back or moving out of the U.S. over tax rates. This is a strong economy?

if i could address warren buffet i would tell the dried up old fart to put his money where his mouth is.

[41chevy]

Mr.Buffet has worked for his wealth, unlike Trump who inherited his wealth or borrowed a "small amount of money" from his father (1 Million). Buffet admits that he pays less in taxes that his administrative assistant, and want the government to change that. He will, along with Gates, eventually donate all of his money away. I don't see Mr. Trump ever doing that.

I'll take Buffet's opinion over Trump's any day. His opinion may be overly optimistic, but I rather hear that then "the sky is falling". Buffet statement also includes a lifetime of experience in investing and looking at future trends. Although no one can see into the future it is refreshing to hear someone say that they believe that the future will be better.

Buffett notes that there will still be large scale world wide economic disruption, unemployment and pain along the way as business evolves, but the country (USA) needs to make sure it has a solid safety net of long term unemployment insurance,healthcare, food, heat and rent assistance to help people who lose jobs.

Hope they have a good tax base to pay for the"safety net" freebies Buffett says we will need. Him, Gates, Trump and how many other Smart Rich Boys manipulate the market, buy positions and have regulations and laws passed to benefit them? Trump bought the laws in New York and New Jersey for his casinos, Gates had a monopoly on factory installed OS, Buffett got the pipeline squashed and guess whose tank cars haul oil, ethanol and the grain to manufacture it. Legislation was up to revamp the national rail system to two way lines for hauling freight, Eliminating the dirty semis from the roads will save the earth. Buffett has the in for primary freight.

Do you think Buffett benefited at an early age from his father and his father connections owning a stock brokerage firm?

​Him and Gates giving all the wealth away is in the same line as Andrew Carnegie's "donations" to A) give him peace of mind and atonement for his business practices. Same as my wifes Grandfather Hiram Manville with his asbestos, struck with Money guilt on his death bed. Died of Brown Lung... poetic justice?

Trump "borrowed" a million from daddy. Puts him in the same category as Rockefeller, Morgan, Boeing, Leroy Grumman, Pratt, the MACK Brothers and how many others. What is the difference with borrowing money to start a business venture and a car loan or mortgage?

I assume you saved 100% for your house, car and education and never owe one thin dime. If so can see why you think borrowing money is bad. Me, if my sons needed 50 or 100 K to start a business or buy into one, I as a parent would give them a leg up on their future. Succeed or fail.

[blackdog2]

Here in Connecticut he bought just about every real estate office out and no employees all sub contractors work in the offices not bad for 6% on all transaction very few house under 200k.

[TeamsterGrrrl]

If you want to learn about economics from a couple of the field's foremost experts, spend a little over $100 for a share of Berkshire Hathaway B stock and come to the annual meeting in Omaha. And if you get bored with the all day annual meeting, get out your plastic and take advantage of the bargains BK's corporations will be offering, especially at Nebraska Furniture Mart.

[mackey58]

Yea all those 1 percent rich clowns are all the Ives if they cold legally get by with making us all there slaves they would or maybe that's what the want make the U S a 3rd world country oh wait we re all most there

[TeamsterGrrrl]

Warren is different... Still lives in the same modest house he bought in Omaha years ago, and takes a fraction of the salary execs in such big corporations usually take. Better yet, Warren's been sharing with me... All you gotta do is buy some stock to share in the profits!

[Mcrafty1]

Mr.Buffet has worked for his wealth, unlike Trump who inherited his wealth or borrowed a "small amount of money" from his father (1 Million). Buffet admits that he pays less in taxes that his administrative assistant, and want the government to change that. He will, along with Gates, eventually donate all of his money away. I don't see Mr. Trump ever doing that.

I'll take Buffet's opinion over Trump's any day. His opinion may be overly optimistic, but I rather hear that then "the sky is falling". Buffet statement also includes a lifetime of experience in investing and looking at future trends. Although no one can see into the future it is refreshing to hear someone say that they believe that the future will be better.

The 'times' don't pertain to buffet or his muti-billions,when you have his kind of money you REALLY don't want to anything to change in America. Plus he's not running for president anyway, if he were you can bet his politics would be liberal.

[41chevy]

2 hours ago, Mcrafty1 said:

Mr.Buffet has worked for his wealth, unlike Trump who inherited his wealth or borrowed a "small amount of money" from his father (1 Million). Buffet admits that he pays less in taxes that his administrative assistant, and want the government to change that. He will, along with Gates, eventually donate all of his money away. I don't see Mr. Trump ever doing that.

I'll take Buffet's opinion over Trump's any day. His opinion may be overly optimistic, but I rather hear that then "the sky is falling". Buffet statement also includes a lifetime of experience in investing and looking at future trends. Although no one can see into the future it is refreshing to hear someone say that they believe that the future will be better.

  The 'times' don't pertain to buffet or his muti-billions,when you have his kind of money you REALLY don't want to anything to change in America. Plus he's not running for president anyway, if he were you can bet his politics would be liberal.

How can the man that supports Obama and Clinton be a .........aw never mind.........

[kscarbel2]

On 2/28/2016 at 11:59 AM, 41chevy said:

Buffett notes that there will still be large scale world wide economic disruption, unemployment and pain along the way as business evolves, but the country (USA) needs to make sure it has a solid safety net of long term unemployment insurance,healthcare, food, heat and rent assistance to help people who lose jobs.

Hope they have a good tax base to pay for the"safety net" freebies Buffett says we will need. Him, Gates, Trump and how many other Smart Rich Boys manipulate the market, buy positions and have regulations and laws passed to benefit them? Trump bought the laws in New York and New Jersey for his casinos, Gates had a monopoly on factory installed OS,

Buffett got the pipeline squashed and guess whose tank cars haul oil, ethanol and the grain to manufacture it. Legislation was up to revamp the national rail system to two way lines for hauling freight, Eliminating the dirty semis from the roads will save the earth. Buffett has the in for primary freight.

Do you think Buffett benefited at an early age from his father and his father connections owning a stock brokerage firm?

Him and Gates giving all the wealth away is in the same line as Andrew Carnegie's "donations" to A) give him peace of mind and atonement for his business practices. Same as my wifes Grandfather Hiram Manville with his asbestos, struck with Money guilt on his death bed. Died of Brown Lung... poetic justice?

Trump "borrowed" a million from daddy. Puts him in the same category as Rockefeller, Morgan, Boeing, Leroy Grumman, Pratt, the MACK Brothers and how many others. What is the difference with borrowing money to start a business venture and a car loan or mortgage?

I assume you saved 100% for your house, car and education and never owe one thin dime. If so can see why you think borrowing money is bad. Me, if my sons needed 50 or 100 K to start a business or buy into one, I as a parent would give them a leg up on their future. Succeed or fail.

Crude Slump, Pipeline Expansion Mark End of U.S. Oil-Train Boom

The Wall Street Journal  /  July 25, 2016

As more pipelines reach shale regions, producers have a cheaper way to move their oil to market

The oil-train boom is waning almost as quickly as it began.

Rail became a major way to move crude after companies began unlocking new bounties of oil from shale formations, with volumes rising from almost nothing in 2009 to more than one million barrels a day by 2014, according to the U.S. Energy Information Administration.

But those numbers began falling after oil prices started tumbling two years ago, and aren’t projected to recover anytime soon. In April, just 430,000 barrels of oil rode the rails each day, according to the latest federal figures.

Some of the decline came from a drop in U.S. oil production, but oil and rail executives say the drop-off may be permanent. “At least some portion, and it could be a pretty large portion,” of the rail business won’t return, said Union Pacific Corp. Chief Executive Lance Fritz.

More pipelines have begun reaching North Dakota and other shale regions, giving producers a cheaper way to move their oil to market.

Also, a string of fiery crude-freight-train derailments—including one in Lac Mégantic, Quebec, that killed 47 people in 2013—have prompted a host of new and expensive regulations, and fueled opposition that has helped delay major rail projects on the West Coast, where a dearth of pipelines makes rail useful. Regulators have mandated new safer tank cars, and older tank cars are being phased out—adding to future costs for transporting oil.

The changes are evident in North Dakota, once the epicenter of the crude-by-rail trend. Oil output from the state’s Bakken Shale formation has fallen by 180,000 barrels a day from its 2014 peak. Meanwhile, pipeline takeaway capacity has more than doubled since 2010.

EOG Resources Inc., one of the first oil companies to see the potential for trains to relieve pipelines, opened its first rail loading terminal in Stanley, N.D., in 2009. But that terminal hasn’t loaded a train in more than a year, according to Genscape, a data provider that tracks activity at U.S. rail terminals.

“New pipeline infrastructure has been put in place to move significant volumes of oil to market,” an EOG spokeswoman said.

Enough pipeline capacity is coming online to replace all of the current volume BNSF Railway Co. is shipping out of North Dakota, said David Garin, the railroad’s group vice president of industrial products.

BNSF used to transport as many as 12 trains daily filled with crude primarily from North Dakota’s Bakken Shale, carrying about 70% of all rail traffic out of the area. Now it is down to about five a day.

“Will this business be back to 12 trains a day? Probably not,” said Mr. Garin. “Will it be zero? Probably not.”

Even at its height in 2014, crude-by-rail accounted for less than 2% of total rail volumes, according to Association of American Railroads data. But its decline threatens what was once viewed as a sizable driver of growth for the railroad industry, one that many rail companies, along with oil and gas producers, made investments to support.

Between 2010 and 2015, 89 terminals were built or expanded in the U.S. and Canada to load crude on trains, and nearly as many to offload it, according to consulting firm RBN Energy LLC. 

The oil pouring out of U.S. fields was so much cheaper—more than $20 a barrel below international benchmark prices at times—that refineries were eager to pay higher rail shipping costs in exchange for some of it.

New pipelines have helped shrink that price difference by allowing the landlocked oil to reach market. And the U.S. has lifted a ban on crude exports, which allows American crude to be sent abroad freely and is expected to help keep U.S. and international crude prices more closely aligned.

Now oil trains are competing against tanker ships carrying foreign crude. Analysts say rail deliveries are likely to fall even further once shipping contracts signed during the boom expire in the coming months.

There could soon be more than enough space to carry away all Bakken oil through pipelines now in the works. Phillips 66 is partnering with pipeline company Energy Transfer Partners LP to develop a pair of pipelines that will bring North Dakota crude to Illinois and then down to Texas.

The endeavor, which will cost close to $5 billion, is expected to take a major bite out of oil train traffic, even though the pipelines will ultimately bring oil to the Midwest and the Gulf of Mexico, rather than to the East and West coasts, where trains have primarily taken it.

Phillips 66 said earlier this year it may still be cheaper to take that oil and put it on a barge for delivery by sea to the coasts than to send it directly there by train.

.