|
Warren Buffettâs California dreaminâ
By SIMON AVERYFriday, August 15, 2003 Itâs tempting to ridicule the affair as U.S. culture flipping out on itself. Itâs California... art imitating life imitating art, etc. The worldâs greatest investor and second-richest man has teamed up with a three-time Mr. Universe champion and Hollywood superstar to try to run the most populist and celebrity-mad state in the United States. Hey, why not? Nowhere to go but up. What could Warren Buffett possibly be thinking, attaching his name to Arnold Schwarzeneggerâs bid for the leadership of California and the circus act of recalling a legitimately elected governor with an unprecedented, first-past-the-post vote? Mebbe Arnoldâs a tad smarter than the smirking reporters... And Warrenâs a crafty old bugger. The 72-year-old chief executive officer of Berkshire Hathaway Inc. has made his name and $30-billion (U.S.) fortune betting on vanilla investments, such as insurance and carpets. He deliberately shunned the excitement of the technology boom, the greatest period of wealth generation in modern times, questioning the marketâs fundamentals. He has a passion for bridge, not blustering spectacle. This is a man who still lives in the town he was born, Omaha, Neb., in a house he bought in 1958 for $31,500. How do ya think Mr Big got to be Mr Big? People who know Mr. Buffett and his investing style say they were taken completely off guard by his agreement to serve as senior financial and economic adviser to Mr. Schwarzenegger. The billionaire with a social conscience had declined numerous earlier invitations to take a public service role. So, Warrenâs got a secret! In fact, Mr. Buffettâs name was floated for the role of U.S. Federal Reserve Board chairman before Alan Greenspan was hired and more recently to head a government group on corporate governance, said Lawrence Cunningham, a professor of law and business at Boston College and the author of The Essays of Warren Buffett. Heâs got the credentials. But while they canât figure out why heâs jumping into Californiaâs economic mess, people familiar with the Oracle of Omaha agree the state could only benefit from his expertise. Itâs almost a no-lose situation for someone who knows WTF heâs doing, so Warren will make a difference. And mebbe thatâs why he offered to do it... "Once again, heâs doing something thatâs outside the box," said Larry Sarbit, lead manager of the AIC Focused Series of funds, and a devoted follower of Mr. Buffettâs investment style. "Who better to get financial advice from than the master." This shows heâs already ahead of the game - and that will help when he needs people to have confidence in the plans to turn it around. In the early 1990s, Mr. Buffett helped save Salomon Brothers from collapse when he stepped in as interim chairman. "He came in and got the right people in place and then he moved along," Mr. Sarbit said. Hire professionals with ethics - stay out of their way - and let them get on with it. With hundreds of millions of dollars invested in Salomon, Mr. Buffett had a personal stake in the firmâs survival. Nothing generates motivation for a money man like a few hundred million from his own pocket. 8^) His interests in California are less clear, but several of Berkshireâs major investments rely on a sound California economy. Read the rest... This will probably make this "race" a breeze, but it is California, so anything, absolutely anything can happen. Hey, with Arnie and Warren, it already has - twice! Posted by: .com 2003-08-15 |
| http://www.rantburg.com/poparticle.php?ID=17653 |