Dear DK,

A sage also passes through the phases of childhood, youth, middle age and old age and some of the characteristics of these phases also rub on his sagacity in whatever field.So a bit of a loss in old age is quite in order.

Remember, what I prescribed for old age besides other things as per forces: An old man will put more emphasis on saving his already earned money than on earning more. I think even now Buffet will do well to heed my advice for none is beyond the pale of forces.

Hi DK,

No, I don't think the sage got it wrong. I think his holdings most likely fell victim to the "greed of others." He meant greedy in the sense that folks shouldn't be afraid to buy in times when others might be fearful of buying or investing...and, probably, in "normal" times this strategy has worked for him, but, lately, times have been anything but "normal." The "actual" greed of others along with their deceptive practices has hurt a lot of "honest" investors like Warren Buffet. Still....32% loss isn't 50% or 75% he is still looking pretty good compared to many.....and if anyone has the ability to recover some of those losses I would bet on the Sage.

have a great day, ruth

He's doing better than the market, and you still seem to be in schadenfreude mode. Welcome to 2009, and shake off that coldness, please. If you disagree with my analysis, consult your heart.

By being extra cautious when others are fearful, you're following the downturn, not turning it around. Just as in physics, you need to apply an opposite force to slow a momentum and turn something around, so too financially. Anyone who's a new entrant should be looking at long-term investment, not short-term profit. We all realize we're not yet at the bottom. No one knows when the bottom will be. Those can afford to invest now for the long term are applying pressures upward, counter to downward movements.

Buffet's use of the term greed is about a hunger for upwardness, not a hunger for consuming more than one's brothers and sisters. He is a creative when it comes to riding financial waves. He has always done better than the market. If you measure his success in terms of the differential between what he's doing and what most investors are doing, you will see he is always ahead of the breakers in upward movement, and he's never wiped out in downward movement.

Go ahead and doubt him publicly. Those who doubt his approach enhance his success by adding to the differential between his positions and those of everyone else.

You need something to invest for long term, the ability to withstand pressures of others' fears, and good judgment, to play the game the way he does.

Also, in assailing his philosophy for downturns, you have overlooked its first half: "be fearful when others are greedy."

Investing is a lot like sailing.

There's always more outside the context, DK ;)