March 12, 2009

How Warren Buffett is Breaking His Own Investment Rules

Warren Buffett invested nearly $35,000 in donations in the Democrats and Barack Obama in 2008. While that is surely chump change for him, it is interesting to look at this "investment" in Obama in terms of Buffett's own company-evaluation rules:

1. Invest only in great management teams with proven records
2. Invest only in entities with low or manageable debt
3. Invest only in entities that have a business model you like

Considering that Obama:

1. Has very little political experience and an economic management team that hasn't even been assembled yet
2. Has already passed a stimulus bill that tripled the nation's debt load in 2009
3. Has positions that Buffett himself went on the record to disagree with (carbon emissions cap and trade, Card Check and executive jet usage)

Do you think that Obama -- if he were a company -- would be considered a good investment?

No comments: