Saturday, December 12

How Warren Buffett helped me earn a dollar



About a month ago I turned on my computer early one morning and brought up the Scottrade ticker showing my stock interests. One of my stocks, Burlington Northern railroad, showed a pre-market price $20 higher than the closing a day earlier. (I had a few shores of this because Warren Buffett held a lot of shares). The higher price was a computer glitch, surely, and planned to call the brokerage firm but it was early so I did a news check. To my surprise, Warren Buffett had announced during the night he would buy all of BN that he didn't already own and the stock jumped like it was on steroids. I never had a stock jump $20 in one day. I sold it pre-market, took my profit and said a silent prayer of thanks to the Sage of Omaha. All of this only heightened the interest I had in a lengthy Wall Street Journal story today about Mr. Buffett. Mr. Buffett said, among other things, that in this past year of investing dangerously he had looked "into the abyss," and some of the best decisions he made were deals he didn't do. The small investor (and I am minuscule dabbler: i.e. smaller than small) can't touch a share of Mr. Buffett's stock ($99,000 per share for Class A and $3300 a share Class B) but you can look at him from time to time and smile when he does something that puts money in your pocket.
(This is from my blog available here.)