As we settle into the holiday malaise one thing keeps coming across
the airwaves, and print with more intrusive annoyance than a new colored
or shaded shopping day advertisement: Warren Buffet.
Over the years he has a great track record and has delivered share
holder value worthy of praise. So let me be clear that I respect, and
applaud it. However the sycophantic drooling over what he says; or the
unquestioning must follow cult like reactions to every word mouthed is
getting not only old – it’s down right pathetic. Not only from investors
of all stripes, but the media as well.
When it comes to investing one term that gets repeated over, and
over, and over again is “I worship at the altar of Mr. Buffet.” I
understand using hyperbole to make a point. Yet what you hear next 9 out
of 10 times is that person carrying on as if there really is some alter
within a building where this person or others receives edicts from one
of Warren’s many investing guide books. (Sorry I meant gospels) As to
instruct and follow his written word as he has written.
The only problem for the devoted is this: Mr. Buffet has never
written a book on investing. Ever! Sure you can find a collection of his
essays. However that’s not the step by step 1-2 3 manuals many allude
to. Those are all written by a cottage industry of the devoted – to the
devoted. As to push or sell the Buffet mystique. All that real
information within “Uncle Warren’s” head is still there, kept closely
guarded – just like his money.
As far as the people worshiping are concerned – who cares. It’s
“Uncle Warren!” Whether you call it a religion or a cult one thing is
evident. This is the kind of thinking and reasoning that more often than
not gets the “followers” into trouble in the end.
I’ve pretty much followed the philosophy of another wealthy American:
Andrew Carnegie. I could go on at length, but I’ll just share one of
his many poignant statements which I personally follow with a zeal that
would make a Buffet devote blush. (and that’s saying something) It goes
like this:
“I don’t listen to what men say – I watch what they do.”
– Andrew Carnegie
Which is why I’m not only tiring, but I’ve now become annoyed.
Currently Mr. Buffet is being parade across
the financial media touting his thought on how the wealthy should pay
higher taxes. Whether you agree with the premise or not is irrelevant.
What I would like to point out is this: “Be wary of someone telling
everyone else to do something that they don’t do on their own.”
I would have a lot more respect for Mr.
Buffet’s stance or the faithful proclaiming his benevolent tone if I saw
evidence that he practiced what he’s telling everyone else should be
done. Yet I have heard only a handful of people call him on it. In other
words, “How much extra do you send in with your filed returns?” However
to the devoted words like that are considered blasphemy.
If paying higher taxes was paramount to the
survival of the country, then why is it Mr. Buffet has all his BILLIONS
going to a charity when he passes on? Why is he not leaving all that
money to the government to help out as he so advocates to everyone else?
Another glaringly fact that all this dribble from the likes of Mr.
Buffet and others is just that – its dribble.
Recently the government announced the report
for the total extra, or voluntarily donated money received. The line is
on every federal tax return which allows anyone and everyone to give or
pay extra if they wish. You can call it a donation box for “Uncle Sam.”
Total amount given last report? $7 million
dollars.Yes, total! Not per billionaire like the sage of Omaha. No $7
million dollars as in total that’s it. Looks like it’s more of a “Do as I
say – Not as I do” moment for the likes of our financial pseudo
relatives is it not?
Which brings me round to my tiring
statement. I have no issue with the likes of Warren Buffet or others
touting this tax policy or that tax policy. I’ve listened to cases made
by others of similar investing prowess. Many make good cases for and
against certain types. They’re understandable, well articulated, and
they base their arguments on what they see as flaws in policy or codes.
Jim Chanos (someone who’s business acumen I
admire) one of the great short side players of the markets often speaks
on the issue of where certain tax loopholes should be adjusted or
closed, etc. You can agree with his reasoning or not. But what I don’t
hear from someone like him are blanket statements of “The rich need to
pay more.” That’s far different than what the congregation following
“Uncle Warren” espouse.
Just to be clear I have nothing but respect
for Mr. Buffet as an investor and the demonstrated return of capital he
has provided for his companies, employees, and investors alike. What I
am growing tired of is the obvious “Do as I say – Not as I do” undertone
that barks incessantly through my screen when I see him giving
interview after interview on everyone paying their fair share.
Just once I would like to see someone
follow-up with the question: “If you believe people like yourself should
pay more, then why are you still disputing by not paying the near $1
BILLION dollars in back taxes it’s been reported you owe? Wouldn’t it be
a nice gesture to just cut a check and show others you put your money
where your mouth is, rather than continuing to fight it in court?”
Hey it’s the holidays, I can dream can’t I? But I’m not holding my breath.
© 2012 Mark St.Cyr www.MarkStCyr.com
