Tuesday, May 11, 2010

Of Interest...Not Reason

Warren Buffett has taken a bit of criticism for his defense of Goldman Sachs.

So here is a CNBC article summarizing some of that criticism (and support).

I happen to agree with much of the criticism but not at all surprised by Buffett's defense of Goldman. The reality is, Berkshire Hathaway (BRKa) now has a meaningful financial interest in the investment bank.

"Would you persuade, speak of interest, not of reason." - Ben Franklin

In a perfect world, I'd like to see Buffett come down much harder on the Goldman and the industry as a whole but that's not in the cards. Charlie Munger, in his own unique way, has been plenty critical of Goldman and, more generally, investment banking practices while still not undermining Berkshire's investment.

To me, Buffett is simply an exceptional businessman and investor who also happens to be a very good teacher.

He need not be a saint.

Adam

Long BRKb

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