It must have made safeguarding himself from the worst considering he had prior knowledge to the level he got to review their financial history in depth.
Warren Buffett is a horrible man. I don't fall for his self-depreciating chuckles that attempt to project humility, nor his mock-concern for the poor. Skeletal children starve in Yemen and countless homeless suffer in the USA while he chuckles about what a blunderer he is. He is a fantastic business man, who is self-focused and so cold-hearted that he disowned his grand-daughter when she said on Oprah: "Money makes my grandfather's world go around." She used his name to promote her struggling artistic career, but he disowned her and made himself look good by saying he wants her to 'Make it on her own.' (Unlikely for her to be successful as an artist without his help). He claims to be giving most of his wealth away after death because of accumulated interest. By that logic, nobody would ever be charitable. It is utter nonsense. Make no mistake, he wouldn't spit on somebody if they were on fire if it would lose him money, and his charitable donations to date are more about the reputation he values more than money.
Considering that Lehman and AIG went to mr. Buffett to ask for help, you understand the power that this man actually has. His decisions could have had influence literally on the world's financial sector, yet he is so humble and down to earth. Mr. Buffet is in his own league of intellectualism and values!
They went to almost anyone for money if you had more than 1 billion in your accounts chances are that Lehman called you. They wanted money, nothing else.
Lutky, I don't think there are that many people or even companies, that have one billion sitting around somewhere in the bank. And when it comes to mr. Buffet it's not just about the money, it's his reputation and credibility. When Buffet chooses to give you money, he's giving you more than money, he's associating his very valuable brand with you ;) So a billion from Buffet is worth more than a billion from some russian oligarch or arab price who stole his country's money ;)
Dan One You're watching too many movies, do you really think Buffet would've changed the history if he indeed would've given Lehman some chop change? Some things are just bigger than a man.
When you are that smart, well established and worth that much. You have time as an option. That is what money buys, not happiness but options. Also Warren has great values
When the loan to finance a new phone is 0%, it makes good sense to not pay for it all outright and instead take the 24 month installment option and invest the money in the meantime to at least get a return beating inflation.
True peoples average Wages are the same as 50 years ago with inflation, it's all the subcriptions and buying the new electronic stuff. I still got my Samsung S6 from 3 years ago. No need to upgrade.
Buffett doesn't want an iPhone. He sees that everyone else has or wants one and buys the company instead. This year he has massively increased his position in Apple.
Technically big investment banks like that constantly are asking for loans. They do not like to hold cash reserves because if you're holding cash, it's not making investment returns. They constantly ask for overnight loans and run on no more than day to day operating cash. No successful big bank could ever hold enough money to bail itself out if it's stocks dropped and assets melted.
He seems to not understand technology at all. It wouldn't surprise me if he accidentally gave his cell phone number as the fax. Besides, he said it wouldn't have changed his mind. So following directions would have been a moot point either way.
The owners of industry are the crisis, because they manipulate the market and manipulate regulation of that market: The plans and projects of the employers of stock regulate and direct all the most important operation of labour, and profit is the end proposed by all those plans and projects. But the rate of profit does not, like rent and wages, rise with the prosperity, and fall with the declension of the society. On the contrary, it is naturally low in rich, and high in poor countries, and it is always highest in the countries which are going fastest to ruin...The interest of this third order, therefore, has not the same connexion with the general interest of the society, as that of the other two...The proposal of any new law or regulations of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it. Smith, Adam, "The Wealth of Nations," (1776), Book I, Ch. 11, Conclusion of the Chapter, ¶11. Thus, Smith explains that the interests of the owners of industry are the structure of the economy and are permanently opposite to the itnersts of the general society. Accordingly, when the economy is sound, wealth concentration should not occur. Only when profit-seekers have rigged the system through legislation do concentrations occur. Id. (see also Beaucoyannis, 2019 , located at blogs.lse.ac.uk/politicsandpolicy/adam-smith-and-inequality/). Adam Smith's analysis is similar to that of Karl Marx.
Lehman had $600b in assets and doesn't know how to send a fax. One reason they went out of business. Stupidity. Who sends a fax to a cell phone; who doesn't ask for a fax number, and who doesn't call afterward to confirm the fax was received when you are on the brink of collapse ?? Lazy/ lazy/ lazy.
Nate Tinner-Williams He said Send A Fax. That means - a fax machine. Big gray looking thing that sits on someone’s desk at hotel, with a phone number. That’s WB’s generation. And when WB says something - do it! 😂
You've got to respect a man like Buffet. One of the wealthiest men on the face of the planet, which in turn also makes him one of the most powerful. Yet he still remains humble and has somehow managed to avoid it leading to corruption.
That's cool how some of the content is text on the screen and some of the content is audio dialog. I definitely think your stories are so important that I just stare at them with perfect focus for five minutes at a time.
0:46 they show warren's well worn, but not yet torn shoes. pure gold. AIG and Lehman begging Warren for money is just like greed asking for forgiveness from integrity and discipline. And Warren denying help feels like justice being served. People talk about value, integrity and honesty in books, but Mr. Warren Buffet embodies it everyday. A legend that we need even more, in the kind of times we live in.
@Jay there's a cockney word around here for your crony capitalism which is lobbying, crooked. Americans should focus on their first world problem like policing and gun laws. At least my part of world solved them long ago
@Jay YOU ARE AN IDIOT! Warren Buffet did not buy Lehman for "pennies on the dollar". Barclays bought Lehman's U.S. banking and capital market unit. One division. The rest of the company is gone.
@@JuniperMoonshine lying on the internet does nothing for no one. But in thus case, as usual, a crash was produce by excessive leverage and not understanding the risks. Now go back to shoplifting groceries.
@@samsonsoturian6013 🤣 I could never take you serious. 🤡 You are the weirdo who will make assumptions and lie on the internet yourself. Maybe next time disprove what I’m saying, and leave the Ad hominems in that empty wallet of yours .
The fact that AIG and Lehman Brothers, two highly "successful" companies were desperately seeking cash . . . is prima facie evidence that there was something seriously wrong with their "success". Smart investors don't put their companies at great risk. The old gambler's saying applies: Never gamble more than you can afford to lose. It applies to all of us.
the issue is they dont gamble with their money... did anybody go to jail or got their earnings back, big No... yes they lost their jobs... does that make a CEO starving. maybe a bit of a ego bruise... hahaha the rest of the society pays
there is a very big lesson here life mr Buffett said: for regular businesses, they sell products, for financial institutions, they sell confidence. Once confidence is gone, the financial institutions are worthless. Always invest in businesses that create real products, never invest companies that create air.
xD Facebook? Uber? Any Platform? What is a real product? Is a contract a product? (therefore Lehmann?) Shall i invest in Apple bec they manufacture iphones and not in Palantir( SAP; any software company) because they make software? I think u dont unterstand either the stock market nor the world.
"Once you lose confidence, it's all over." When I first started studying economics in college, I quickly came to the conclusion that finance is nothing but a con game. When I heard young junior grade analyst guests on Louis Rukeyser's Wall Street Week touting stocks based on cash flows and multiples projected five years out, I knew there would be stuff hitting the fan down the road.
*_"I quickly came to the conclusion that finance is nothing but a con game"_* - That is quite a statement!!! Maybe that applies to the US financial market, but the USA isn´t the entire world, just so you know.
I would challenge that it is a con game. I've been investing since I was 20 after I served a volunteer mission, which allowed me, my wife and kids to settle pretty early in life (we live in New Zealand) I'm no means rich but I pretty much work when I want to and stay home with the kids most days. The MOST IMPORTANT lesson I have learned, is the participants in the stock market are NOT RATIONAL - this were most money is made and lost and I was lucky to learn it pretty early on (I made losses on Air Nz lol) and the theory and models rely on participants being rational (exclusion of macro events)
@@leechrec Humans are in fact irrational, as they tend to make decisions based on their feelings instead of rational thought. Marketers know this and so they always try to trick people to buy stuff they otherwise wouldn't have, using different psychological tricks. Psychology is in fact closely related to Economics, and I love both fields. You should read Dan Arielys book called "Predictably Irrational" which includes several social experiments on human irrational behavior. "The Honest Truth About Dishonesty" is also cool and fun. Such knowledge will make you avoid classic traps that businesses in particular always lay for you.
@@leechrec It's typically an if statement in economic models. "IF humans are rational, ___ will go up". Economic models don't typically make assumption or definitive statements.
The whole story of the 2008 drama is worth rereading. The players were the who's who in our economy, and England's. Warren Buffett was perfectly correct in staying clear of this debacle, but it might have helped. The US government traditionally takes the more questionable loans off the books and mostly sells the company that remains. The problem was the subprime loans were so colossal that these companies were a house of cards. Too many non-performing loans due to Congress removing all checks on mortgages...
That is why I am not a capitalist. Capitalists are the most irresponsible and selfish people on earth. They want to privatize profits and not pay taxes but as soon as they screw up they want society to bail them out.
Warren Buffer is huge, yet he is so kind and humble. I hope he had a good time during that interview and that he was comfortable. Why cant they get him a cup of tea or something?
If it is true, then go do that. No one "stole" anything. So hide your obvious bias against banks and wall street and actually do something with your life.
@@logic7374 "steal" is a metaphor here they do not steal literally. However they induced people to invest on risky investments and everything eventually collapsed. To me this is also kind of stealing and who paid for their mess and dishonesty ?? TAXPAYERS !! Please watch the documentary "The Inside Job". www.imdb.com/title/tt1645089/
I still sometimes flash back to when I was in my high school freshman year as all this happened. Sometimes, we spent entire class periods just watching the news and seeing the numbers just sink ever so steadily.
I was graduating college in 2008. It was brutal when I got my loan repayment letter in. Worked hard for years taking any job I could to pay off that debt. I finally established a high paying career in 2014 and its not even in my field.
Warren Buffett actually reads the documents and analyses them? No wonder he makes money :D most of those cdos were never ready properly that actually caused the crash. It was all prestige that sold the dodgy cdos
A single CDO was made up of thousands of mortgage documents. Nobody had the time or inclination to read them, and hardly anyone, including those trading them, had very little idea what they were actually buying and selling.
"Nobody has to do business with Lehman or any financial institution.' "Once they lose confidence, then it's all over." - Warren Buffet. Thanks Mr. Buffet & I'll take those Golden Words of wisdom into my IRA account and life.
2008 Was the biggest turning point in my life. Work was so slow I decided to quit my job and start my own business. Which in turn quickly turned me onto real estate investing. I basically knocked 15 yrs off my retirement age.
@@nightowl1654 jordan klepper interviewed a trump supporter who said trump TOTALLY helped him make more money. klepper: okay ... what business are you in? trump supporter: debt collection (^ true)
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!
I have been investing in stocks for over 10 years now and I have made a lot of money. My portfolio has grown exponentially and I can't thank stocks and *ROCHELLE DUNGCA-SCHREIBER* enough for such an amazing way to make money!
*ROCHELLE DUNGCA-SCHREIBER* is also my portfolio-coach, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.
quote.morningstar.com/stock-filing/Annual-Report/2007/11/30/t.aspx?t=:GS&ft=10-K&d=890b27b7d1e68efa Thanks for the link and thoughts! Got me wondering what the balance sheet of GS looked like during the same time. Goldman had roughly $11.8B cash compared to $1.08T in liabilities, so close to the same cash/liabilities ratio as Lehman at the time. Perhaps there are more distinctive red flags to be found on the Lehman balance sheet that indicates that the company was in real trouble. please let me know if you know of any other red flags, would be interesting to analyze and maybe contrast with similar companies like GS.
You make an excellent case! . I’ll add 1 more point… Seeing my monthly dividend income grow is EXTREMELY motivating to continue investing . Buying growth makes sense intellectually, but during a bear market, watching my growth portfolio shrink…the motivation isn’t as high as it is for dividend investing. A lot of this is psychological!
It's crucial to have a well-thought-out strategy and not make impulsive moves based on short-term market fluctuations. Patience and a long-term perspective are key. You should consider a market expert to guide you.
that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+
Really interesting. Shows the value of deep knowledge and understanding among other things. He was able to make very profitable investments in GS and others.
Unfortunately, I agree what @Greg F. said. The Intelligent Investor can still teach us to have a good mindset, but it provides few business insights under current cirumretance. For one, it is a book written way back; moreover, many Mr. Buffett's key insights originated as he is a savvy businessman. TII doesn't teach you that. It is still a must-read, for sure.
I would agree that reading it from cover-to-cover means you have to spend quite some time on companies in a industry that we wouldn't care anymore nowadays. But I still think it is a must-read. The key lesson from the book, namely "Mr. Market" in Chapter 8, is timeless. Mr. Buffett himself has said many times, it is “by far the best book on investing ever written.”
Awwww he comes off as such a humble, genuine and well meaning guy.........na, there's a reason he's at the top and has remained there. Do NOT judge a book by its cover.
Buffett’s decision to turn down Lehman Brothers and AIG really highlights his discipline and commitment to fundamental value. It’s a reminder that having cash isn't just about making deals-it's also about knowing when to say no.
"If you have a run on the bank and there's a big line in front of that bank and you put your money in that bank, you're going to get in line. And if the president of the bank comes out and says our capital ratio is 13%, you don't care, because you don't know what a capital ratio is and you don't know whether he knows what one is and you know he's probably lying to you." 4:20
This is how he's become rich, by reading the boring stuff nobody want s to read. Some of the most important things to know when investing are how accounting works and what the balance sheet says. If you're not up to date with changes in accounting standards you might lose a lot of money.
I like how he can say "no" to a company just based on a single, publicly available SEC filing. He knows how to read them and know if they're too much trouble to bother with or not. He saw red flags and said no, understanding it was almost certainly going to be throwing good money after bad. These days, all SEC filings are available for free to the public on the SEC's own website for any publicly traded company. But, it is a lot of information to parse through, try and understand and to see the red flags he does. But, the fact remains that the information is all there for anyone to see. It just takes a number of years of recognizing what's good and bad in such filings to have the decision-making prowess he does. Buffet is just an affable nerd who does his homework, or "DD" as the kids like to say these days.
Considering that these companies had some of the smartest, most experienced and best qualified people on the planet working for them, they still made a hash of their businesses. Must be humbling to beg money from an old man who learnt value investing from Ben Graham in the 1950s and doesn't even use a computer.
Buffett is a God amongst these imperfect mortals. Still gotta love his age-old proven method of thoroughly scrutinizing and taking meticulous notes of financial statements. 👏👏👏
Mr. Buffet and Mr. Munger are an amazing duo. He knew taking on either of these deals would be too risky. If something looks too good to be true there is ALWAYS a reason.
They are greedy when they saw money flow they follow it but Buffett is opposite he knows greedy make money but over greedy make greatest fall like Romans greed they built greatest kingdom with same over greedy their destroy own kingdom so when everyone one buys tech stocks he never goes but buying insurance companies and food company now and buying some business which makes small profit but have long term future like bricks manufacturing Buffett own bricks company it produces cash every year like all his business produce lot of cash now his biggest problem is company have lot of cash but not have business which he likes
This man is an INCRECDIBLE GENIUS > he is also FULL OF INTEGRITY AND HUMILITY > Do not underestimate him because of his gentle manner. He is one powerful dude .
Got a reply from WSJ customer service: We're glad you enjoyed the music in the video! Here is the link to APM music where you can hear the album. You don't need a login to preview: www.apmmusic.com/albums/KOS-0564 Album Title: "Historical Documentary" (part of the Kosinus music library) Composers: Roger Abaji (SACEM), Stefan Rodescu (SACEM) The songs in order of appearance. #29 Sad Past #1 Historical Documentary #31 Century Melancholia #5 Noble
I was a kid back in 2008 ..and I wondered what happened to Manchester United jersey the year after as it changed to Aon from Aig....At that time I had no clue about this crises..I was in hostel and we only watched movies on Sunday's ..
AIG stopped sending the checks to Man United. If the sponsor stopped paying for advertising their name on the shirt, the club can look for another shirt sponsor.
@@iMadrid11 Yeah I know that when I grew up..but back then I didn't know that...I was obsessed with the AIG logo...Took quite a time to let AON sink in..
Just googling it tells you that the AIG deal expired at the end of 09-10, when they were replaced by new sponsors. So the original deal with AIG didn't in fact fall through, but rather expired at the end of its duration.
I forgave, but I still live with trauma. Many persons lost they life, no fault divorces occurred, persons are missing, folks still recovering and still homeless. I just finally watched these "types of films" because I finally retired in 2018. My target was 2008. Helping volunteering, fam, co-workers, neighbors & friends really test my Spirit & Soul. ~Bachelor I stand...Still in retirement....penny stocking!
When you tell someone that you're getting killed by short-sellers, then you are also telling them there is a massive problem in your company. A great company wants short-sellers cause they'll get killed when everyone holds.
He saw how more money would not help these mis-managed companies, yet has advocated people be forced to give increasing sums of money to the most mis-managed entity in the world, the U.S. Government, and the most inept managers, the U.S. Congress.
You know you've made it when a bank calls you for a loan.
😂
It must have made safeguarding himself from the worst considering he had prior knowledge to the level he got to review their financial history in depth.
Warren Buffett is a horrible man. I don't fall for his self-depreciating chuckles that attempt to project humility, nor his mock-concern for the poor. Skeletal children starve in Yemen and countless homeless suffer in the USA while he chuckles about what a blunderer he is. He is a fantastic business man, who is self-focused and so cold-hearted that he disowned his grand-daughter when she said on Oprah: "Money makes my grandfather's world go around." She used his name to promote her struggling artistic career, but he disowned her and made himself look good by saying he wants her to 'Make it on her own.' (Unlikely for her to be successful as an artist without his help).
He claims to be giving most of his wealth away after death because of accumulated interest. By that logic, nobody would ever be charitable. It is utter nonsense. Make no mistake, he wouldn't spit on somebody if they were on fire if it would lose him money, and his charitable donations to date are more about the reputation he values more than money.
Jack Green shut up, no one cares about your foolish stories
@@billyconforto9108 Facts, not stories, you weirdo.
My brother asked for 20 bucks once . I told him to send me fax .
Did you check your flip phone 6 months later?
unfortunately there wasn't any fax machine around
Yeah my brother has done the same before, said i needed to see his most recent financial report
And pretended you never got it
I told him send me the 10-K
Considering that Lehman and AIG went to mr. Buffett to ask for help, you understand the power that this man actually has. His decisions could have had influence literally on the world's financial sector, yet he is so humble and down to earth. Mr. Buffet is in his own league of intellectualism and values!
Or he's not just what he SEEMS to be...
+movement2contact explain the dog whistle pls. im not up to date with the current most popular conspiracy theory regarding wall street investors... :D
They went to almost anyone for money if you had more than 1 billion in your accounts chances are that Lehman called you. They wanted money, nothing else.
Lutky, I don't think there are that many people or even companies, that have one billion sitting around somewhere in the bank. And when it comes to mr. Buffet it's not just about the money, it's his reputation and credibility. When Buffet chooses to give you money, he's giving you more than money, he's associating his very valuable brand with you ;) So a billion from Buffet is worth more than a billion from some russian oligarch or arab price who stole his country's money ;)
Dan One You're watching too many movies, do you really think Buffet would've changed the history if he indeed would've given Lehman some chop change? Some things are just bigger than a man.
Warren Buffet is like the Yodah of Wall Street, the yield is strong in this one
:D
G26 Jessy “we never stretch for yield”
Negate interest is the dark side. Come to the dark side Luke. I am your father. Vader is the fed.
We must unlearn what the economy has learned...
Ha
"A flip phone I still have"
Yet the average American is taking loan to pay for his new iPhone.
When you are that smart, well established and worth that much. You have time as an option. That is what money buys, not happiness but options. Also Warren has great values
When the loan to finance a new phone is 0%, it makes good sense to not pay for it all outright and instead take the 24 month installment option and invest the money in the meantime to at least get a return beating inflation.
Electronics is always depreciating asset ! great thought process by Mr. Buffet !
True peoples average Wages are the same as 50 years ago with inflation, it's all the subcriptions and buying the new electronic stuff. I still got my Samsung S6 from 3 years ago. No need to upgrade.
Buffett doesn't want an iPhone. He sees that everyone else has or wants one and buys the company instead. This year he has massively increased his position in Apple.
Imagine a bank of that size calling looking for a loan
Eh? Warren Buffet is well known for providing Goldman with a large loan during the recession, around $5b I think it was and he made like $2-$3b on it.
🙅♂️ income ratio to high😜
Yes, the deal was on very very good term. 10% div perpetual preferred shares, together with warrants with very attractive strike price.
Technically big investment banks like that constantly are asking for loans. They do not like to hold cash reserves because if you're holding cash, it's not making investment returns. They constantly ask for overnight loans and run on no more than day to day operating cash.
No successful big bank could ever hold enough money to bail itself out if it's stocks dropped and assets melted.
He also helped 'Swiss Life' in critical times with 2 or 3bn loan. Its not uncommon for him
Here’s the first lesson: If you’re asking for help and someone gives you a set of instructions, you should follow the instructions.
Especially when it's Warren Buffett
haleme Especially if it’s Warren Buffett!
Exactly.....😏
Exactly... That's what I don't understand, he said send me a fax...
He seems to not understand technology at all. It wouldn't surprise me if he accidentally gave his cell phone number as the fax. Besides, he said it wouldn't have changed his mind. So following directions would have been a moot point either way.
“Once they lose confidence, it’s all over” - Yes!
The longer they HAVE confidence, the deeper the fall once they don't.
lol, this statement isn't that profound.
@@waawaaweewaa2045
It's the truth the whole truth and nothing but the truth.
When they start spending (wreckless) more money than they making is all over just a matter of time
Sounds like the obituary for bit coin
Luckily the american taxpayer bailed them out instead, against their own will!
TARP was a horrible program. The then sec of the treasury hijacked more money than will ever be counted
you cannot blame warren for " not giving his own money to banks", can you
@@colasalz2 who's blaming him for making the right decision?
@@billygrey8087 it was signed by dubya you dumb boomer
Lehman wasn't bailed out. It went bust. TARP was a reaction to that.
Its amazing how he has trained his brain to analyze companies!!!
Truly a blessing and gift!!!
its called finance.
He went to school and he reads lots of books.
It's easy to read company financials
Buffett-Musk 2024
You can only see who are the truly rich when the crisis comes.
Mr Buffet said it himself, "only when the tide goes out you discover who is swimming naked"
You can see who’s truly silly by how they spell truly
that's the truth..
@@LegitimateJuice thanks for pointing that out.
The owners of industry are the crisis, because they manipulate the market and manipulate regulation of that market:
The plans and projects of the employers of stock regulate and direct all the most important operation of labour, and profit is the end proposed by all those plans and projects. But the rate of profit does not, like rent and wages, rise with the prosperity, and fall with the declension of the society. On the contrary, it is naturally low in rich, and high in poor countries, and it is always highest in the countries which are going fastest to ruin...The interest of this third order, therefore, has not the same connexion with the general interest of the society, as that of the other two...The proposal of any new law or regulations of commerce which comes from this order, ought always to be listened to
with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it.
Smith, Adam, "The Wealth of Nations," (1776), Book I, Ch. 11, Conclusion of the Chapter, ¶11. Thus, Smith explains that the interests of the owners of industry are the structure of the economy and are permanently opposite to the itnersts of the general society. Accordingly, when the economy is sound, wealth concentration should not occur. Only when profit-seekers have rigged the system through legislation do concentrations occur. Id. (see also Beaucoyannis, 2019 , located at blogs.lse.ac.uk/politicsandpolicy/adam-smith-and-inequality/). Adam Smith's analysis is similar to that of Karl Marx.
My takeaway here is they didn’t send the fax.
They did- but Warren Buffet didn't know how to access it from his mobile phone!
@@guppy0112 Hahahaha. Best part
Lehman had $600b in assets and doesn't know how to send a fax. One reason they went out of business. Stupidity. Who sends a fax to a cell phone; who doesn't ask for a fax number, and who doesn't call afterward to confirm the fax was received when you are on the brink of collapse ?? Lazy/ lazy/ lazy.
guppy0112 in his world and generation, that means fax machine.
Nate Tinner-Williams He said Send A Fax. That means - a fax machine. Big gray looking thing that sits on someone’s desk at hotel, with a phone number. That’s WB’s generation. And when WB says something - do it! 😂
“Once they lose confidence, it’s all over” - that should be on a bumper sticker.
economics 101.
agreed
And tshirts, record covers, posters, tattoos, textbooks, etc.
apply that slogan to blacks and the Democrat party
Or on the dollar bill.
You've got to respect a man like Buffet. One of the wealthiest men on the face of the planet, which in turn also makes him one of the most powerful. Yet he still remains humble and has somehow managed to avoid it leading to corruption.
Well, We wouldn't really know, but He at least tries to be outwardly nice.
That's cool how some of the content is text on the screen and some of the content is audio dialog. I definitely think your stories are so important that I just stare at them with perfect focus for five minutes at a time.
0:46 they show warren's well worn, but not yet torn shoes. pure gold. AIG and Lehman begging Warren for money is just like greed asking for forgiveness from integrity and discipline. And Warren denying help feels like justice being served. People talk about value, integrity and honesty in books, but Mr. Warren Buffet embodies it everyday. A legend that we need even more, in the kind of times we live in.
@Jay that's what makes him successful businessman
@Jay there's a cockney word around here for your crony capitalism which is lobbying, crooked. Americans should focus on their first world problem like policing and gun laws. At least my part of world solved them long ago
@Jay He did not swoop in and buy Lehman for pennies on the dollar. Lehman no longer even exists.
@Jay YOU ARE AN IDIOT! Warren Buffet did not buy Lehman for "pennies on the dollar". Barclays bought Lehman's U.S. banking and capital market unit. One division. The rest of the company is gone.
@Jay bye the way, it is easy to find out when somebody gives a thumbs up to their own comment.
He knew both companies were crooked beyond repair. That’s why.
th-cam.com/video/FF3_3YCIREI/w-d-xo.html
There was no criminality involved. Just foolishness.
@@samsonsoturian6013
No, it’s a crime story, not an economic one.
@@JuniperMoonshine lying on the internet does nothing for no one. But in thus case, as usual, a crash was produce by excessive leverage and not understanding the risks. Now go back to shoplifting groceries.
@@samsonsoturian6013 🤣 I could never take you serious. 🤡 You are the weirdo who will make assumptions and lie on the internet yourself. Maybe next time disprove what I’m saying, and leave the Ad hominems in that empty wallet of yours .
No matter how many degrees you have, last few seconds in this video is a lesson worth 1000 times more....Trust-Confidence.
Absolutely!
…because, what exactly will you do with that?
Mr Buffett: Is surprised to get a phone call at a hotel, on a mobile phone
Also Mr Buffett: Owns 5% of Apple
The fact that AIG and Lehman Brothers, two highly "successful" companies were desperately seeking cash . . . is prima facie evidence that there was something seriously wrong with their "success". Smart investors don't put their companies at great risk. The old gambler's saying applies: Never gamble more than you can afford to lose. It applies to all of us.
Why not it wasn’t there money. As if they gave a hoot. And then AIG got $85B from Obama and no one went to jail. Perfect corruption.
I can only imagine how much they are funneling into Obama and his wife now in return.
First of all never gamble. Invest!
the issue is they dont gamble with their money... did anybody go to jail or got their earnings back, big No... yes they lost their jobs... does that make a CEO starving. maybe a bit of a ego bruise... hahaha the rest of the society pays
@@mehmetkunter5998 You are correct but perhaps incomplete: "They don't gamble with their money" but they charge you a fee to gamble with YOURS.
The great investor that I am, I sold BRK for $21,000 which is now worth $325,000
Ouch, huge error!
And the stupid loser who bought them from you drinks champagne to your health.
Oh ...boy😢
In what..like 20 years?
Random, Since 23 years ago that it has gone up 1500%.
Always get the fax before you invest . Warren Buffet headstone
Funny. That made me laugh. Good one.
Cute
but sadly.. no fax machine exist today... hello??
Facts
Fax machines still exist..
there is a very big lesson here life mr Buffett said: for regular businesses, they sell products, for financial institutions, they sell confidence. Once confidence is gone, the financial institutions are worthless.
Always invest in businesses that create real products, never invest companies that create air.
xD Facebook? Uber? Any Platform? What is a real product? Is a contract a product? (therefore Lehmann?) Shall i invest in Apple bec they manufacture iphones and not in Palantir( SAP; any software company) because they make software? I think u dont unterstand either the stock market nor the world.
The phrase "confidence game", AKA "con" came to mind immediately.
Your comment literally makes no sense whatsoever.
So never invest in Berkshire Hathaway?
GOLD IS SAFE INVESTMENT THAN CRYPTO BUY PHYSICAL GOLD
"Once you lose confidence, it's all over." When I first started studying economics in college, I quickly came to the conclusion that finance is nothing but a con game. When I heard young junior grade analyst guests on Louis Rukeyser's Wall Street Week touting stocks based on cash flows and multiples projected five years out, I knew there would be stuff hitting the fan down the road.
*_"I quickly came to the conclusion that finance is nothing but a con game"_* - That is quite a statement!!! Maybe that applies to the US financial market, but the USA isn´t the entire world, just so you know.
I would challenge that it is a con game.
I've been investing since I was 20 after I served a volunteer mission, which allowed me, my wife and kids to settle pretty early in life (we live in New Zealand) I'm no means rich but I pretty much work when I want to and stay home with the kids most days. The MOST IMPORTANT lesson I have learned, is the participants in the stock market are NOT RATIONAL - this were most money is made and lost and I was lucky to learn it pretty early on (I made losses on Air Nz lol) and the theory and models rely on participants being rational (exclusion of macro events)
@@lolosaulala48 Funny thing is that economic models almost always assume that people are rational.
@@leechrec Humans are in fact irrational, as they tend to make decisions based on their feelings instead of rational thought. Marketers know this and so they always try to trick people to buy stuff they otherwise wouldn't have, using different psychological tricks. Psychology is in fact closely related to Economics, and I love both fields.
You should read Dan Arielys book called "Predictably Irrational" which includes several social experiments on human irrational behavior. "The Honest Truth About Dishonesty" is also cool and fun. Such knowledge will make you avoid classic traps that businesses in particular always lay for you.
@@leechrec It's typically an if statement in economic models. "IF humans are rational, ___ will go up". Economic models don't typically make assumption or definitive statements.
The whole story of the 2008 drama is worth rereading. The players were the who's who in our economy, and England's. Warren Buffett was perfectly correct in staying clear of this debacle, but it might have helped. The US government traditionally takes the more questionable loans off the books and mostly sells the company that remains. The problem was the subprime loans were so colossal that these companies were a house of cards. Too many non-performing loans due to Congress removing all checks on mortgages...
That is why I am not a capitalist. Capitalists are the most irresponsible and selfish people on earth. They want to privatize profits and not pay taxes but as soon as they screw up they want society to bail them out.
Off topic, but I absolutely enjoyed the string orchestra music in the background.
Really conveyed the feeling of panic and desperation at that time.
l come here to listen to that music
Do you have any idea of the orchestra?
Music name please?
also wondering that
same! Shazam cannot tell me what the background music is
Warren Buffer is huge, yet he is so kind and humble. I hope he had a good time during that interview and that he was comfortable. Why cant they get him a cup of tea or something?
Don't let the folksy demeanor fool you.
if you steal 100$, you go to jail. If your steal 100 million and wear a nice suit, you will be okay....
If it is true, then go do that. No one "stole" anything.
So hide your obvious bias against banks and wall street and actually do something with your life.
@@logic7374 "steal" is a metaphor here they do not steal literally. However they induced people to invest on risky investments and everything eventually collapsed. To me this is also kind of stealing and who paid for their mess and dishonesty ?? TAXPAYERS !! Please watch the documentary "The Inside Job". www.imdb.com/title/tt1645089/
Tell that to Bernie Madoff
@@emni...6095 so who is the real thief, the government or the bank?
I'd rather say: if you owe 50k to the bank, you won't sleep well. If you owe 50 millions to the bank, THEY won't sleep sound at night...
I'd also forget how to use my phone if you called asking me for a couple billion 🤔
Boutit031 😂😂😂😂😂
for realllllll, sameee
😂😂😂😂 good one
"Sorry man, I was taking a nap. What's up?"
🤣🤣🤣
I still sometimes flash back to when I was in my high school freshman year as all this happened. Sometimes, we spent entire class periods just watching the news and seeing the numbers just sink ever so steadily.
I was graduating college in 2008. It was brutal when I got my loan repayment letter in. Worked hard for years taking any job I could to pay off that debt. I finally established a high paying career in 2014 and its not even in my field.
Warren Buffett actually reads the documents and analyses them? No wonder he makes money :D most of those cdos were never ready properly that actually caused the crash. It was all prestige that sold the dodgy cdos
A single CDO was made up of thousands of mortgage documents. Nobody had the time or inclination to read them, and hardly anyone, including those trading them, had very little idea what they were actually buying and selling.
That's all he does. I think at one time he said he read 5 publications a day. That along with financial statements.
love uuu babushkot my love :p
@@RainbowManification You don't need to read all of them, just a small random sample.
"Nobody has to do business with Lehman or any financial institution.' "Once they lose confidence, then it's all over."
- Warren Buffet.
Thanks Mr. Buffet & I'll take those Golden Words of wisdom into my IRA account and life.
2008 Was the biggest turning point in my life. Work was so slow I decided to quit my job and start my own business. Which in turn quickly turned me onto real estate investing. I basically knocked 15 yrs off my retirement age.
So you benefited from the 2008 financial crash. Lol.
@@nightowl1654 jordan klepper interviewed a trump supporter who said trump TOTALLY helped him make more money.
klepper: okay ... what business are you in?
trump supporter: debt collection
(^ true)
@@op3129 huh?
@@op3129 that has nothing to do with this comment except for it involving money.
Don’t worry, retirement is grossly overrated 😊
Mr. Buffet absolutely knows a “Bad Deal “ when he sees it . That’s why he’s been so successful.
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!
Exactly ! That's my major concern and what kind of profitable business or investment can someone do with the current rise in economic downturn
I have been investing in stocks for over 10 years now and I have made a lot of money. My portfolio has grown exponentially and I can't thank stocks and *ROCHELLE DUNGCA-SCHREIBER* enough for such an amazing way to make money!
*ROCHELLE DUNGCA-SCHREIBER* is also my portfolio-coach, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.
^^^^ SCAMMERS ^^^^^^
I want a copy of the financial statements with the notes.
That would make for some interesting reading.
Thanks for this.
hehehehehehehe....if only
quote.morningstar.com/stock-filing/Annual-Report/2007/11/30/t.aspx?t=:GS&ft=10-K&d=890b27b7d1e68efa
Thanks for the link and thoughts! Got me wondering what the balance sheet of GS looked like during the same time. Goldman had roughly $11.8B cash compared to $1.08T in liabilities, so close to the same cash/liabilities ratio as Lehman at the time. Perhaps there are more distinctive red flags to be found on the Lehman balance sheet that indicates that the company was in real trouble.
please let me know if you know of any other red flags, would be interesting to analyze and maybe contrast with similar companies like GS.
THAT IS INSANE
4:49-4:51 what's up with camera man? Are you nodding or something?
You make an excellent case! . I’ll add 1 more point… Seeing my monthly dividend income grow is EXTREMELY motivating to continue investing . Buying growth makes sense intellectually, but during a bear market, watching my growth portfolio shrink…the motivation isn’t as high as it is for dividend investing. A lot of this is psychological!
It's crucial to have a well-thought-out strategy and not make impulsive moves based on short-term market fluctuations. Patience and a long-term perspective are key. You should consider a market expert to guide you.
that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
Sharon Lee Peoples is my licensed manager. Search the name. and you’d find necessary details to work with to set up an appointment.
I will try and get in contact with Sharon
I like how this video is really about a dude that doesn’t know how to use his phone
It's about why money works....confidence. Oh, and don't invest without reading the supporting documents.
And yet he’s richer than you will ever be.
@@joshuajoe1419 yet he is a tech dumb. Can't read a message.
@@subhamroy2399 so... why does that matter?
@@subhamroy2399 it's ok, because he'd just hire some poor people to read the message for him instead
This man has zero ego zero arrogance. At odds with many top hedge fund folks
This man is very very dangerous. 🙂
And do they really "hedge"? Nope.
Ray Dalio is another one like Buffet
When Buffet speaks, every Fed Chair grabs their notepad 😂😅
Really interesting. Shows the value of deep knowledge and understanding among other things. He was able to make very profitable investments in GS and others.
I wish I could have 1% of the insight Mr. Buffett has.
That would be worth $883 million!
Can start by reading 'The Investor Intelligence' by Benjamin Graham, hope it helps buddy
Unfortunately, I agree what @Greg F. said. The Intelligent Investor can still teach us to have a good mindset, but it provides few business insights under current cirumretance. For one, it is a book written way back; moreover, many Mr. Buffett's key insights originated as he is a savvy businessman. TII doesn't teach you that. It is still a must-read, for sure.
I would agree that reading it from cover-to-cover means you have to spend quite some time on companies in a industry that we wouldn't care anymore nowadays. But I still think it is a must-read. The key lesson from the book, namely "Mr. Market" in Chapter 8, is timeless. Mr. Buffett himself has said many times, it is “by far the best book on investing ever written.”
I'd happily take that :)
Awwww he comes off as such a humble, genuine and well meaning guy.........na, there's a reason he's at the top and has remained there. Do NOT judge a book by its cover.
Ste B I think he’s just smarter and sneakier than the rest.
Losers have to believe that cheating is the only path to success. It consoles them.
man you are judging a book by its cover in this comment
I wish there was footage of Mr Buffet denying the banks for a loan. I would watch that on repeat for hours.
the banks got bailed out by the public instead though
No fax
Very Smart MAN... i honor and respect Mr. Buffet..
"You don't know what a capital ratio is..." LoL.
It doesn't matter, when the balance sheets are way off.
Buffett’s decision to turn down Lehman Brothers and AIG really highlights his discipline and commitment to fundamental value. It’s a reminder that having cash isn't just about making deals-it's also about knowing when to say no.
I have never seen somebody talking that straight, always to the point, even if he talks about checking or makes a joke
Once you lose confidence in a bank, it’s all over. How true that is.
I like this man.. if he works hard, I think he can make it big
Lol
I love how the financial markets hinged at one point on the fact that Buffet went to a performance with his wife at an inopportune time.
BUFFETT AND MUNGER THE TWO SMARTEST GUYS IN THE 🌎 WORLD...👍
when billion dollar companies ask you to bail them out.........you know you've made it...........
"If you have a run on the bank and there's a big line in front of that bank and you put your money in that bank, you're going to get in line. And if the president of the bank comes out and says our capital ratio is 13%, you don't care, because you don't know what a capital ratio is and you don't know whether he knows what one is and you know he's probably lying to you." 4:20
I barely want to fax something. This guy goes through 150 pages of financial documents and makes notes...
This is how he's become rich, by reading the boring stuff nobody want s to read. Some of the most important things to know when investing are how accounting works and what the balance sheet says. If you're not up to date with changes in accounting standards you might lose a lot of money.
"Once you loose confidence, its all over" - that is pretty much the summary of every business
Lose, not loose. C'mon, man.
When he said "once they lose confidence it's all over", that's a clear indication that fractional reserve banking is a rigged game.
OnlyGreatness007
*lose
His comment and his way of thinking is always insightful!
For myself... 1:40
Insane he reviewed the financials himself. 150 pages? Dudes awesome.
Who's here after the collapse of Silicon Valley Bank?
That’s generally my alibi for avoiding bill collectors- “Geeez, sorry- I don’t know to use this old phone. My bad” 😆
I like how he can say "no" to a company just based on a single, publicly available SEC filing.
He knows how to read them and know if they're too much trouble to bother with or not. He saw red flags and said no, understanding it was almost certainly going to be throwing good money after bad.
These days, all SEC filings are available for free to the public on the SEC's own website for any publicly traded company. But, it is a lot of information to parse through, try and understand and to see the red flags he does. But, the fact remains that the information is all there for anyone to see. It just takes a number of years of recognizing what's good and bad in such filings to have the decision-making prowess he does.
Buffet is just an affable nerd who does his homework, or "DD" as the kids like to say these days.
The master of due diligence
Brilliant Chanel great content
Considering that these companies had some of the smartest, most experienced and best qualified people on the planet working for them, they still made a hash of their businesses. Must be humbling to beg money from an old man who learnt value investing from Ben Graham in the 1950s and doesn't even use a computer.
Buffett is a God amongst these imperfect mortals.
Still gotta love his age-old proven method of thoroughly scrutinizing and taking meticulous notes of financial statements. 👏👏👏
The greatest financial genius of all time
Mr. Buffet and Mr. Munger are an amazing duo. He knew taking on either of these deals would be too risky. If something looks too good to be true there is ALWAYS a reason.
He asked them to send a fax, so they just randomly sent a fax without bothering to ask him for a specific destination number.
They knew the hotel he was staying at…
This guy is a beast. Humble individual who doesn't own a computer turns down the arrogant 'big boy bankers'. Legend
They are greedy when they saw money flow they follow it but Buffett is opposite he knows greedy make money but over greedy make greatest fall like Romans greed they built greatest kingdom with same over greedy their destroy own kingdom so when everyone one buys tech stocks he never goes but buying insurance companies and food company now and buying some business which makes small profit but have long term future like bricks manufacturing Buffett own bricks company it produces cash every year like all his business produce lot of cash now his biggest problem is company have lot of cash but not have business which he likes
Can’t read text messages on his phone but can go through a 200 page financial statement. What a boss!!!
This man is an INCRECDIBLE GENIUS > he is also FULL OF INTEGRITY AND HUMILITY > Do not underestimate him because of his gentle manner. He is one powerful dude .
3:48 *"On Sept. 16, 2008, the **_U.S. TAXPAYERS_** bailed out AIG for $85 billion." (ftfy)* 😑
What is he saying in the beginning? What's extraordinarily contagious? I listen to that bit 10 times and have no idea what he's saying!
The richest person in the world was given a 2 week headstart before the economy collapsed. Leman Brothers is the gift that just keeps on giving lol
Pretty much everyone figured it out it was all going down but nothing much could be done at that point.
"Once you lose confidence, it's all over."- lesson of the story
What is all the music in this video? It's so amazing!
Got a reply from WSJ customer service:
We're glad you enjoyed the music in the video! Here is the link to APM music where you can hear the album. You don't need a login to preview: www.apmmusic.com/albums/KOS-0564
Album Title: "Historical Documentary" (part of the Kosinus music library)
Composers: Roger Abaji (SACEM), Stefan Rodescu (SACEM)
The songs in order of appearance.
#29 Sad Past
#1 Historical Documentary
#31 Century Melancholia
#5 Noble
@@bernardotrindade3232 You're awesome!!! Thank you so much:)
Was thinking the same nice job wsj!!!
Bernardo Trindade thank you!!
Just a hunch but rap music wouldn't seem to fit.
Well spoken....The TRUTH is hard for some these days!
"it was a LITTLE bit late" I'm dead I can't be more fascinated by a person more then him.
I was a kid back in 2008 ..and I wondered what happened to Manchester United jersey the year after as it changed to Aon from Aig....At that time I had no clue about this crises..I was in hostel and we only watched movies on Sunday's ..
AIG stopped sending the checks to Man United. If the sponsor stopped paying for advertising their name on the shirt, the club can look for another shirt sponsor.
@@iMadrid11 Yeah I know that when I grew up..but back then I didn't know that...I was obsessed with the AIG logo...Took quite a time to let AON sink in..
Ujjal Das 😂😂 same here
Just googling it tells you that the AIG deal expired at the end of 09-10, when they were replaced by new sponsors. So the original deal with AIG didn't in fact fall through, but rather expired at the end of its duration.
@@MahiTanMazy They were not in a position to renew the deal..
lack of integrity made lehman to colapse
I forgave, but I still live with trauma. Many persons lost they life, no fault divorces occurred, persons are missing, folks still recovering and still homeless. I just finally watched these "types of films" because I finally retired in 2018. My target was 2008. Helping volunteering, fam, co-workers, neighbors & friends really test my Spirit & Soul. ~Bachelor I stand...Still in retirement....penny stocking!
Fear and Trust is two powerful emotions
1:40 'No I cannot make a commitment like that' --when integrity prevails, nothing else matters.
When you tell someone that you're getting killed by short-sellers, then you are also telling them there is a massive problem in your company. A great company wants short-sellers cause they'll get killed when everyone holds.
Buffet will make an investment only when you least want him to.
I lost $8 dollars…everything I had in the market.
Thank you for sharing.
Very good Mr Buffet 🙂
This man will live to be 200 years old eating big macs and fries. 😂🤣😂🤣
He saw how more money would not help these mis-managed companies, yet has advocated people be forced to give increasing sums of money to the most mis-managed entity in the world, the U.S. Government, and the most inept managers, the U.S. Congress.
The intro music is sick, anyone knows the name ?
Trying to figure it out as well...
@@arquimedesq Historical Documentary - By Stefan Rodescu (There is a whole playlist in his channel)
Let the Free Market sort out the winners and losers; stop bail outs.
Love from christ and I love you and for hope
4:53 Well said for Robinhood.
"If you are calling me....I am definitely NOT interested". He is absolutely the last person I can imagine making these investments.
J S even though he gave 5B during the recession to gain 3
"Once they loose confidence, it's all over"
He learned his lesson from Solomon brothers
Great segment. WSJ should definitely ask WB to do more of these. Topic could be China tariffs perhaps????