In 1934, Ben Graham has written one of the best investment books “Intelligent Investor” and a very wise and intelligent investor read it at the age of 19. The reader of the book (who till then tried his luck with charts and technical analysis) understood the value of the book and complied with the principles religiously. And he became the most intelligent investor in today’s world and currently enjoys position as the second richest person in the world.
Almost every investor ought to know this person - None other than investing genius Warren E Buffett.
Now he asks American rich to give back some of their wealth to the government so that it can balance itself while walking on the tight rope of fiscal balance. US deficits are so high that it can topple the fiscal balance and drive its economy deep into recession and stagnation over the next decade.
Warren Buffett supports taxing the rich and knows a lot about becoming wealthy.
BUT most of the American rich class refuses to do this. The stupid rich who refuses to help their own Nation at this moment of crisis lacks the intelligence of Warren Buffet due to the following reasons:
1. Rich can become richer only in a growing economy. Hence, by paying more taxes and saving the US economy, the rich is helping themselves. A decade of recession doesn’t benefit anyone, including the Rich. Whatever tax they pay now, can be recouped easily through higher profits from their businesses and increasing asset values. Warren Buffet knows this.
2. China growth during the last decade averaged about 9%-10% and even if it slows down (as desired by some myopic western economists), it will easily clock a growth rate of 8% while US economy will face recession. This will accelerate the takeover of No1 slot by China as the wealthiest (& largest) economy in the world. The humiliation of China overtaking the American pride as the No 1 economy will add salt to the injury. Let rich US American be greedy and stingy and cling on to their wealth as their own Nation’s pride goes down the drain.
3. Some writers speak about Warren Buffet being stingy and miserly. I don’t think so. (His middle class attitude gave him robust health and balanced approach to life that helps him to think on his feet. This attitude is comparable to Ben Franklin). On the other hand the rich class of the US who doesn’t want to help the US Govt by agreeing to more tax to reduce the debt burden of the Nation is the real miserly and misery lot.
4. Well, if the statistics provided in the recent press is correct, the poor class in the US is the fastest growing in the world. With the next possible recession in the US, the poor class in the US would rapidly rise and you can see sorrowful souls in soup kitchens burgeoning. Don’t know how the rich class in the US with see this – possibly the villain character (i.e. Scrooge) in Charles Dickens novel 'Christmas Carol', would look a gentleman compared to them.
By refusing to go by the most intelligent investor Warren Buffet’s advice, the rich class of the US is helping China, torpedoes their own future wealth and proves Mr. Scrooge is better than them.
Almost every investor ought to know this person - None other than investing genius Warren E Buffett.
Now he asks American rich to give back some of their wealth to the government so that it can balance itself while walking on the tight rope of fiscal balance. US deficits are so high that it can topple the fiscal balance and drive its economy deep into recession and stagnation over the next decade.
Warren Buffett supports taxing the rich and knows a lot about becoming wealthy.
BUT most of the American rich class refuses to do this. The stupid rich who refuses to help their own Nation at this moment of crisis lacks the intelligence of Warren Buffet due to the following reasons:
1. Rich can become richer only in a growing economy. Hence, by paying more taxes and saving the US economy, the rich is helping themselves. A decade of recession doesn’t benefit anyone, including the Rich. Whatever tax they pay now, can be recouped easily through higher profits from their businesses and increasing asset values. Warren Buffet knows this.
2. China growth during the last decade averaged about 9%-10% and even if it slows down (as desired by some myopic western economists), it will easily clock a growth rate of 8% while US economy will face recession. This will accelerate the takeover of No1 slot by China as the wealthiest (& largest) economy in the world. The humiliation of China overtaking the American pride as the No 1 economy will add salt to the injury. Let rich US American be greedy and stingy and cling on to their wealth as their own Nation’s pride goes down the drain.
3. Some writers speak about Warren Buffet being stingy and miserly. I don’t think so. (His middle class attitude gave him robust health and balanced approach to life that helps him to think on his feet. This attitude is comparable to Ben Franklin). On the other hand the rich class of the US who doesn’t want to help the US Govt by agreeing to more tax to reduce the debt burden of the Nation is the real miserly and misery lot.
4. Well, if the statistics provided in the recent press is correct, the poor class in the US is the fastest growing in the world. With the next possible recession in the US, the poor class in the US would rapidly rise and you can see sorrowful souls in soup kitchens burgeoning. Don’t know how the rich class in the US with see this – possibly the villain character (i.e. Scrooge) in Charles Dickens novel 'Christmas Carol', would look a gentleman compared to them.
By refusing to go by the most intelligent investor Warren Buffet’s advice, the rich class of the US is helping China, torpedoes their own future wealth and proves Mr. Scrooge is better than them.
