This post is part of our feature on Money Winners of 2008. See all 20.
Well, "my pal Warren" did it again. "The richest man in the world" -- it has a nice ring to it.
Though the moniker did not last throughout the year due to the violent markets, and his significant holdings in insurance, Geico and General RE; banking, US Bancorp (NYSE: USB) and Wells Fargo (NYSE: WFC); and credit card company American Express (NYSE: AXP), which all dropped, he is still viewed as the top investment guru in the world, deserving his title -- the Oracle of Omaha. These are likely only temporary setbacks and he may very well be back on top soon.
Warren Buffett has been alternating places with Microsoft (NASDAQ: MSFT) founder Bill Gates over the past decade. Since Microsoft shares are only down about 35% this year, less than the overall market, and since that remains his largest holding, Gates edged out Buffett at last measure. Although Buffett is notorious for not investing in "tech-stocks," he has stated he did buy 100 shares of Microsoft after he and Gates became friends.
It has been quite a year indeed for Buffett because in all the market turmoil he has remained very active, and he has advised both presidential candidates when asked, though he has supported the Democratic Party and president-elect Barack Obama, who has more actively sought his advice as of late.
Buffett invested in Goldman Sachs (NYSE: GS) and General Electric (NYSE: GE) buying $5 billion in Goldman and $3 billion in GE preferred shares at a guaranteed fixed return of 10% while getting warrants in each as well. (See Chasing Value: Berkshire -- you're selling, I'm buying!) He also has added to his shares in Burlington Northern Santa Fe (NYSE: BNI) railroad, now as the largest shareholder, owning over 18% of the company.
None of this has been done very quietly as he has publicly stated it's time to invest in the American stocks again and even wrote an editorial for the New York Times stating his case. He has also been active on the merger and acquisition front as an instrumental part of the InBev purchase of Anheuser-Busch, which closed last month for a price of $70 per share as originally negotiated.
Warren Buffett is still playing a vigorous role in the investment world even as some worry occasionally that the octogenarian might be losing a step. In the latest charity auction for lunch with Buffett, a Chinese investment fund manager won the honors by bidding $2.1 million in the most expensive charity auction ever held on eBay. Quite a lively sum!
Let us all hope that Buffett is with us for a long time and that he continues to permeate the world economic scene with his wisdom as only he can.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture and planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of BRK and WFC.
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