If we were to believe the likes of Robert Reich and Elizabeth Warren then Warren Buffett’s recent actions at Berkshire Hathaway would be tolling the death bell of modern capitalism. For Buffett has decided to buy back nearly $1 billion worth of Berkshire Hathaway stock, something he doesn’t normally do. The usual criticism from the knownothing left – there not being all that much of a know lots left these days – is that stock buybacks are detrimental to the economy.…See More
A not uncommon complaint is that it’s not possible for a country to run a trade deficit forever. At some point that debt has to be repaid. Warren Buffett is fond of explaining this with a construction of “Squanderville” and this is one of the things that Buffett gets wrong in reality. Firstly, for good theoretical reasons, second for good reasons of just counting, basic arithmetic.
Warren Buffett’s explanation:
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But as head of Berkshire Hathaway, I am in charge of investing its money in ways that make sense.