""Let me pose a question for you. It's 1930. Oil in the United States is in glut. We have cartels to get the price
up to $0.50 a barrel. Everywhere we drill we find more oil in our own country; everywhere we drill in Arabia we find even more.
What would the correct policy of the United States have been in that time? Well, the correct policy would have been to issue $150 billion of very long-term bonds and cart 150 billion barrels of Middle Eastern oil into the United States and throw it into our salt caverns and leave it there untouched until the current age.
It's easy to see that in retrospect, but who do you see who ever points this out? Zero. We have a brain-block on this issue. We should behave now to do on purpose what we did on accident then."
so uncle Charlie, let me ask you and uncle warren a question ?? brk was selling at bookish, if you know you can grow book at 7 % plus over time, and you can borrow below 4 %, why wasn't it a no brainer to borrow 20 billion and buyback brk in the 70s ? I know, I know, you two don't take serious questions, I know. AAAAAAAAAmen.
1. Why did Munger choose 1930??? Oil was discovered in Saudi Arabia was 1902. US was already in an oil glut way before 1930. The role oil would play in fueling world eCONomies was clearly identified way before WW1. So, why not chose 1910's, why not 1920's??? What were interest rates in the 1910's, 20's and 30???
2. Who knew we'd have the inflation we've had over the last 80 years in this CONtry??? We used to be on the Gold Standard before the Fed, no???? Did we know that in 1910??
3. Who knew we wouldn't develop a viable energy alternative for 80 years??? Solar, Nuclear, something else??? The reality is Oil was discovered in 1859 in this CONtry, it's now more than 150 years and we still not there with an environmentally and eCONomically viable alternative. Who knew????
Methinks Munger's not so crystal ball is with the benefit of hindsight not only cherry picking what happened but low enough to cherry pick the dates too.
4. How would things have worked out for me if I'd tried this stunt with Whale oil back in the 1860?????
Next Munger will be telling us we should have issued bonds and bought up all the gold in the world back in the 1930 and buried it in the back yard. You know, Gold, that barbarous relic Buffett keeps talking about.
SvcK it up and cope folks, I'm first in line for the next bailout!!!!!!
bro, if buffett didn't think he could grow book 7 % a year over 10 year periods he would retire to Miami and take up shuffleboard. IF he took questions he would splain to us and lucy why he never had any interest in buying back brkb other than in sept 2011, when he used the gimmick to goose the stock back above 110% of book,ha. AAAAmen. On Sundays we must show proper respect for the children of the brkville madrassa .