Tuesday, February 19, 2013

I Hate Warren Buffett

What is it with Warren Buffett?

For many he is the guru of investing. We lesser investors are to look for investments just as he would.

Look for strong brands. Look for strong income strams. Look at continuing profit streams and buy the stock.

I do all the things suggested by Buffett's followers.

There is however a big danger for following such rules. When you see a company that Buffett might like you may just find yourself bought by Buffett.

Over the past couple of years I have been afoul of Buffett twice. First Burlington Northern and Santa Fe (BNSF) anyone who has read my other posts know I love trains. Maybe I was a deprived child never getting that toy railroad for Christmas. But trains are magical, they move lots of goods across country for little cost. Generating cash.

I saw BNSF as a good deal in 2006, Buffett jumped in a couple of years later. Bought it and took my income stream from the market.

Now he looks around and sees the world of tomato ketchup as prime for taking private. Whoops who makes the world's most popular Ketchup. H.J. Heinz (HNZ) bang. Buy it, take it private and bag it. My foresight in buying Heinz back in 2006 when it was $46 was a great moment.

My saddest moment this last week was seeing the shadow of Buffett fall over HNZ. Another income stream bites the dust.

I wish Buffett would just be nice and leave these companies public. I love to invest the Buffett way. It is my way in all cases except one.  I don't buy out the company and then steal it away for myself.

Mr Buffett leave some pickings for the rest of us. Otherwise we will only be left with Facebook (FB) and other companies that you don't inderstand.
If you leave me with no choice in the markets then I might really start to hate investing the Buffett way.

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