Buffett focuses on long term value-creation

Buffett1.jpgThe BBC had a very interesting interview last night with Warren Buffett, the world’s most successful investor and wealthiest man.

Buffett stakes out a clear position on the relative unimportance of financial services in the economy, and on whether there is a need to “motivate” bankers via large bonuses:

• “The idea that people who move money around are some favoured class strikes me as getting pretty far away from where we should be”.
• “Its infuriating for people to see nobody going to jail (as a result of the financial disasters) and a lot of them instead walking off with tons of money at a favourable tax rate”.
• “The very liquidity of stock markets causes people to focus on price action, and turns what should be an advantage into a disadvantage”.
• “It is productive output, and the stream of income that the asset produces over time, that one needs to look at”.
“I’ve been in the right place at the right time, and I shouldn’t delude myself that I am some sort of superior individual as a result of this. I’ve been lucky, and its fair enough that a lot of that should go back to the people who got the short straws in life.”

Excerpts from the interview can be seen by clicking here.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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