Buffett’s well publicised US $5 bill. investment plus warrants in Goldman Sacks (NYSE:GS) – which is now eligible for FED funding – gave investors some hope in this rough market as Buffett deployed some of Birkshire’s (NYSE:BKR.B) considerable cash bank.

I think Buffett is the greatest bookie (book maker) the world has ever seen. I share his philosophy that money flows from the impatient to the patient.

This can also be expressed as: if you are in a hurry you lose!

Expressed in this way it is easy to understand that this is a common function in all human markets.

However, I am surprised when Buffett endorses Index Funds.

If I was to say to you that a large proportion of savings were invested in the stock market without ever reading a balance sheet, you would conclude that this is dumb.

For a start it diminishes the need to even produce a true and easily understandable set of accounts; which is where we are now.

It also affords the possibility to ramp into the index or run out of the index (via short sales).

This is the kind of predatory action which is the norm in human markets.

Declaration

Marxist owns Berkshire B shs.