Why would Warren Buffett contradict himself on the pages of the most widely followed business newspaper on earth and argue for the continuation of incentive structures that are clearly failing. And why would Warren Buffett engage in the long since discredited practice of avoiding all specifics on a tricky $64 trillion conundrum regarding how to unwind promises that he said, "Will be impossible to keep?" The answers to these questions may lie in the fact that virtually every other image-conscious person trying to maintain their popularity, has cautiously navigated all discussions away from the specifics of reforming entitlements.
The most telling biography ever written about Warren Buffett is, “The Snowball,” by Alice Schroeder. In this in-depth study of Buffett, Schroeder provides clues that can help answer the newest questions on Buffett's latest pronouncements. During her research processes, Schroeder dug deep. Eventually she found the most compelling evidence that drives Buffett’s late life motivations. Schroeder concluded after all the facts were in, that Buffett is as much an image-conscious celebrity as he is anything else these days. And while the man continues to extol the virtues of capitalism and still never hesitates to take advantage of a an inside deal (i.e. the convertible preferred private placement from Goldman Sachs right around the time the Bush administration provided the notorious toxic mortgage stained Wall Street investment firm with a fast track to bank holding status), his primary need above all else is to appear to be overflowing with compassion for the little guy.
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| Buffett with Alice Schroeder |
Possessing an image of over-riding compassion is his most precious need. And Buffett is more protective of that image than he is of a few extra million dollars that he might pay in cap gains taxes. This is especially true if active investors paid even more. In fact, so anxious is Buffett to preserve his image as a man of the people, he no longer even speaks with the author of the best written biography on his life. It would seem, after Buffett personally authorized Alice Schroeder to do an authentic biography of him warts and all, he became at tad miffed at the effect some of those little truths had on his image. Still, “The Snowball,” is a must read. There is much more to Warren Buffett than the carefully cultivated late-life image he prefers.
"The Snowball," is most instructive. When this great business apostle does finally die, his personal wealth will NOT go to the federal government. Instead, it will go to a tax-exempt foundation. Buffett has frequently made it very clear that he thinks the foundation of his choice will do much more with his wealth than could be done if what he has accumulated fell into the hands of the U.S. Treasury Department. No arguements there. Buffett devotees would be foolish if they chose to pay more attention to what this brilliant man says vaguely for his image. It is best to know precisely what he actually does as an investor and philanthroper. His letters to shareholders are filled with the truths while his op-ed pieces are image managing generalizations. And in those Berkshire letters we can say that avoiding capital gains tax liabilities is the name of the Buffett game. In fact Buffett avoids virtually all other actions that might tend to put a significant portion of his wealth into the hands of the federal government. And he provides illustrations to justify this approach. These tactics have been, and will continue to be the core strategy for Buffett, even from his grave. Why? Because he is extremely astute. Any op-ed piece written by Buffett (or anyone else) that suggests he does not translate his tax minimizing philosophy into his overall wealth management and accumulation strategy cannot support their case with the facts.
Warren Buffett: "The Snowball"
The Nation - When No Child Left Behind was signed into law 2001, lawmakers knew that mandating 100 percent student proficiency in math and reading by 2014 was unrealistic. But they assumed that by 2009, at the latest, Congress would reform and reauthorize the law and in the process adjust some of its unfeasible mandates.
Now it’s 2011, and Congress has yet to update NCLB. This failure means that 80 percent of Americans schools will be designated as “failing” when school begins in a few weeks. On MSNBC, Dana Goldstein says that Congress has been unable to pass NCLB reform because the Tea Party has eroded the decade long bipartisan consensus on education policy. Read full column here: News New Mexico
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