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Buffett Losing Midas Touch?

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  • Description

    FBN's Charlie Gasparino takes a look at the performance of Warren Buffett's stocks.

  • Duration 4:26
  • Date

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This transcript is automatically generated

Think that was the Oracle of Omaha losing his Midas touch Fox Business senior correspondent try to -- stricter now look in the morning.

One of Warren Buffett's -- needs.

You know he's opposed.

-- great investor I'm sure is he doesn't return my phone calls so people don't return my phone calls -- usually -- stories about but in any event.

Here's my little story about Warren Buffett know they have to do I think when you kind of crunched the numbers -- he's called his last year performance sub par.

I would save the last five and ten years are pretty sub -- When you're an investor you look at five year performance that is the key benchmark to takes into account the fight the financial crisis back in 2008.

-- -- -- Not beating the indexes.

We should point out that the S&P 500 is -- growth in this is well.

So as a lot of different stocks and -- when you compare apples to apples with the value index murmured Berkshire Hathaway.

Is a value fund still beating death is still losing -- that now here's the key measurement on the side.

This is deviation that is not that is not anything to do with with what mr.

Buffett likes -- doing dad that's called standard deviation it's it's a measure of risk and when you look at the measures of risk.

He's pretty high up -- Berkshire Hathaway is a fairly high level of risk for the amount of return that you've -- that means he's a value investor.

He goes in there he buys companies allegedly that the markets to deem -- undervalued but not recognized by the markets.

He rolls the dice on companies like -- solar.

What it what is the other one Burlington northern railroads and you know he loses sometimes -- sometimes a problem with his numbers is that based on the -- that he's taking.

He is not generally he's not generally generating the type of returns we should point out that Berkshire -- It's obviously very profitable.

Is it is reportedly believe his letter -- -- Friday I think they've they've made this year something like 24 billion dollars.

He's also said that his company may be too big to manage right.

250 bill -- at a forty billion dollar market cap.

Right that's hard to to produce outsized returns -- -- dealing with that much money because you have to do make bigger and better bets.

That said he could easily return money to shareholders he's been loath to give it -- to -- in dividends and clearly.

You know something is going on there now we should point out he's 81 years old.

Any -- performance apartment near you put that in the bottom of the screen marathon -- -- one year before it's you know here's what that the thing that strikes me about this analysis.

Is the notion that over that Buffett's -- be very good in the long term right that's the whole thing.

You know he beats everything over ten years -- he doesn't -- the DS and he beats everything over five usually doesn't BCS and where he's done where he shot the lights out and I think that's what people have to realize is that there is -- PR game here he is obviously a great investors been doing this a long time.

Very Smart man.

-- Obama is I guess you could say his favorite fat -- you know calling for tax increases things of that nature.

That said it's kind of interest scene he's not exactly a guy that doesn't roll the dice.

He's a guy that does rolled the dice and I think investors should know that and if you look at his investment for group returns.

You know.

It's he's not he's he's not making it and what would you put on one other thing I I think when I say 81 years old I don't think I could be any age and invest if you you know my in my view.

-- question does become shouldn't be like transition.

I mean ever since.

Mr.

Sokol left and I -- members of the guy that left -- that big write big so big David Sokol David you know he was he was he was the heir parent.

He got truck you know that there was an issue involving blue -- -- boring little company say he recommended.

That stock bet that Buffett should by which proper open did Biden and he owned shares of it.

And then there's a disagreement whether he told.

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