Warren Buffett is giving away $37 billion and he wonders why his stock went down.....

[WallStGolfer31]

Reporter: ".......Why on this news are your shares selling off?"

Buffet replies with a statement that sums up he can;t tell why his shares sold off intra day.


Now I'm good, but I'm sure not on the level of Buffet (yet lmao) and I forecasted his shares would rop off monday when I heard the news. The reason? Upon donating his shares to charity, these charities can't do anything with these shares (esp. since they don't pay a dividend) so of course they are going to sell them for the cash for they can put it to good work. Of course such a huge influx of selling will bring the price down. The shares sold off in anticipation of this today. Is this not obivious?

[MDZ]

Hmm, you are good Dan. I honestly had no answer for this upon reading the first part of your post, but you make a great point. Now I don't know for sure if you are right (I am not that good, lol) but it has my vote for a good reason.

[WallStGolfer31]

Originally Posted by FirstConsul

Heh, it's unlikely that he would say even if he knew. He probably wouldn't want to give speculators whatever any ideas.
Last year, Buffett decreased his short position in USD forward contracts to $16 billion, down from $21 billion, yet he reiterated his bearish reasons.

Makes sense, but I doubt it, you don't get much speculation on ill-liquid $2000+ and $90,000 shares. Those who invest in shares of Berkshire would not have the mindset in which you would have a margin account. Therefore you would not have to worry about shortselling (bc they wouldn't get loaned out)


How could Buffet not know this?

[WizTrader]

I saw it on CNBC today. It was an interesting story. He's giving 31 billion to the Bill and Melinda Gates foundation and 5 billion to some other charities.

NEW YORK - A philanthropic merger between Warren Buffett and Bill Gates, the world’s two richest men, sets a new benchmark for the wealth others may donate and the businesslike scrutiny they will demand over those funds.

Buffett on Monday signed over much of his $44 billion fortune to the Bill & Melinda Gates Foundation as part of the single-largest act of charity in U.S. history. The contribution would double the foundation’s assets to more than $60 billion.

In doing so, Buffett said it was much harder to give money away responsibly than to amass it in the first place

http://www.msnbc.msn.com/id/13562058/from/RS.1/


its nuts.

[WallStGolfer31]

I pointed out his original press conference on CNBC, did you see that one?

He said he had no clue why his shares would sell off on the news.

I gave a reason, he had none.

You're pointing out his afterthought, I was talking about his original thought.

[Stocktrading101]

The final lunch bidding was like $622k I believe, thats a crap ton of money for lunch

[WallStGolfer31]

Originally Posted by FirstConsul

Well, he doesn't *think* the selling will affect the price of the stock much, so he wouldn't have a clue of why the stock was down initially.
And besides, it's back up.

His thinking and the thinking of partially informed shareholders were obiviously not alike. THe question why is your stock down today was asked by a reporter. He said he didn't know. but obiviously some shareholders sold bc they thought it would adversely effect the price, thus lowering the price of the stock beyod normal noise on that day. Didn;t justify thre selloff, or calcualte how much it would even effect his stock, I jsut gave the single reason for a selloff that day!