1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (5983) 

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)


Kfh227 - 7 years ago    Report SPAM
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 - 7 years ago    Report SPAM

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

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

Please leave your comment:

GuruFocus has detected 4 Warning Signs with Berkshire Hathaway Inc $brk.a.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

User Generated Screeners

murph4297Buyback, Debt, P/S
dsvitaleValue Screen
hcgaron3rd F-Screen
shadowarriorFCF Eur
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)