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Warren Buffett Municipal Bond Story

June 09, 2009 | About:

Sometimes I really do not know whether the mass media is trying to mislead us or trying to spice-up the story. Listening to them and trying to invest accordingly is simply impossible.

Here is a bloomberg clip on that Warren Buffett doubled his holdings in municipal bonds in the past 9 months. The story is significant, but the the information cited is for March of 2009. Warren Buffett called these bonds having "unthinkable" yields. When did he say that? Now or back in March? bloomberg wouldn't say. Sea change has happened since March 2009. Are these bond still a great buy? Which ones? Bloomberg wouldn't say.

The clip also stated that Warren Buffett scaled back on stock buys and reduced Berkshire Hathaway's cash position to the lowest level in 5 years, leaving the viewer with the impression that Buffett has reduced his stock holdings to the lowest level in 5 years. That is not true. Even if it is true, it is due to market decline not because he sold.




Rating: 2.8/5 (12 votes)

Comments

kfh227
Kfh227 premium member - 6 years ago
First iPod post!!

This is typical of the media. They make money off of Ads. The more articles they have, the more that ads are viewed which means what eveybody? Ya, most media outlets are there to make money, not to inform.
budlab
Budlab - 6 years ago


Does anyone know what kind of yield and bargain was obtained on those bonds?

What is Buffett's effective yield or roic on this?

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