The Business on: Warren Buffett, Chief executive, Berkshire Hathaway
Stephen Foley is a former Associate Business Editor of The Independent, based in New York. He left in August 2012. In a decade at the paper, he covered personal finance, the UK stock market and the pharmaceuticals industry, and had also been the Business section's share tipster. Between arriving with three suitcases in Manhattan in January 2006 and his departure, he witnessed and reported on a great economic boom turning spectacularly to bust. In March 2009, he was named Business and Finance Journalist of the Year at the British Press Awards.
Tuesday 27 September 2011
Is the Oracle of Omaha out of ideas?
It is the question of the hour among Buffettologists. What got them talking was news that Berkshire Hathaway, his giant investment company, will launch a share buy-back programme.
Hang on. Companies buy back their shares all the time
For Mr Buffett and Berkshire it has been an almost complete no-no. Much better, he says, to invest his company's cash in new acquisitions. That is why the buy-back (of an unspecified number of shares over an "indefinite" period) represents a capitulation of sorts for the 81-year-old investor.
So it's the end of an era?
Better to think of it as another step in Berkshire's transition from a cult centred on Mr Buffett towards being a General Electric-like conglomerate that can last for decades after he is gone.
La la la. Fingers in ears. Don't say that
Certainly the Oracle's followers hate to think of the day, but Mr Buffett is well into executing his retirement plan. Just last month he hired Ted Weschler – who he met when Mr Weschler paid millions of dollars for a charity lunch with Mr Buffett – to run some of the company's portfolio and search for new acquisitions.
What will the world do without him?
Miss him. He is not just a guru for thousands of wannabe investors, but Berkshire is now one of the world's top ten companies. What began as a small Massachusetts textile firm which Mr Buffett acquired in the 1960s is now an investor-of-last-resort for companies in distress (such as Bank of America, which got a $5bn injection last month). And Mr Buffett is turning into the conscience of the nation, too, telling America's rich that they must pay more in tax.
But he still has all his faculties
Indeed he does. And, yes, he still ascribes this to the medicinal properties of Cherry Coke.
The Microsoft mogul told fans a few home truths during his Reddit AMA
- 1 Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
- 3 Ball pool for adults opens in London
- 4 Baldness could soon be treated using stem cells, scientists hope
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Boris Johnson claims porn-obsessed Islamic jihadists are 'literally w*****s'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Teenager brandishing fake gun taken down by police after demanding airtime on Netherlands' NOS TV station
Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...