Warren Buffett must be crazy

How could he be so optimistic? Doesn't the guy read the papers?

By Jim Cramer Mar 2, 2011 10:09AM

more investing resources and stock picks from the streetjim cramerWarren Buffett must be an idiot, isn't he? I mean think about it. Think about what this clown is saying and doing. Think.


First, he likes investing in America. The stooge! Doesn't he realize we don't know how to make anything, and we have a dysfunctional government with a dysfunctional president? Doesn't he read the papers?


Second, he wants to buy something big right here, right now? Who is he -- Moe? Larry? Curly? Dumb? Dumber? Petey? I mean someone buy the old guy a copy of The Wall Street Journal. He’ll see that everything is overvalued and going lower. How can he want to buy anything when we know everything is hopelessly, radically overvalued? Like maybe 10%, 20%, 30% overvalued? You name it.


Plus, everything is going higher: costs, taxes, labor, materials, entitlements. Shouldn't he be selling and shorting? Who is he kidding? Does he think he's cheerleader-in-chief? Is that the game he's playing? He just likes the TV. Would walk a mile for a camera.


Post continues after video:


Third, he's optimistic. Now that's a dodge. You know the old guy's got to have some sort of personal account where he's banging down the futures every day. He has to be, right? I mean he's way too rigorous to really be optimistic. Maybe he thinks Cairo is a city in Illinois. Maybe he thinks that Montgomery just took Rommel in Benghazi so everything's calm now.


Doesn't he know that $500 billion in municipal bonds are at risk? Or how we are broke and getting more broke, everyday? Or that oil is going to $200 and we've got the Saudi day of rage coming up on March 11? Octogenarians aren't on Facebook, I guess.


Fourth, he is happy with this railroad purchase. Yeah, sure. For now. He doesn't get that when the Chinese tighten up, nobody will want what Burlington ships. Locomotives? How about loco portfolio managers! That railroad is going to be worse for him than all of that housing nonsense he owns. Remember, this is the same dope that bought gypsum board at the high and motor coaches. Motor coaches for heaven's sake! And Chinese automakers! Doesn't he even realize what happens to cars when a government tightens?

Fifth, perhaps the issue here is that he hasn't really been around long enough to see anything like this market. He just doesn't comprehend what can really go wrong! He hasn't read the "Ahead of the Tape" column in the Journal and doesn't know that he will soon be victim of the most important Newtonian law of investing: What comes up must come down. Heck, and then there is the Journal's corollary -- it doesn't have to go up to go down!


Here's my conclusion. If he didn't maintain that faux-openness, then the Securities and Exchange Commission would have to be looking through those numbers to see how he can really generate those returns. I know that JPMorgan (JPM) is having trouble modeling him. I have seen the memos. The Wilpons have told me not to worry, that the bullpen is a bigger fret. Everyone's just making too much money to squeal, of course. Wait until Picard gets in there!


If you buy that, there’s only one investment strategy you will ever need: short Berkshire Hathaway (BRK.A).


At the time of publication, Cramer was long JPMorgan.


Jim Cramer is co-founder and chairman of TheStreet. He contributes daily market commentary for TheStreet's sites and serves as an adviser to the company's CEO.


Follow Cramer’s trades for his Charitable Trust.


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Mar 2, 2011 2:12PM
As I was reading this, I kept waiting for the punchline, thinking it was all sarcasm. Then I got to the end, and there was no punchline. Cramer actually recommends shorting BRK.
So, lets see, Buffett has a phenomenal recored over several decades, although for the last decade or so he has been about average. Must give him some leeway here as he avoids tech and has to run hundreds of billions of dollars.
Cramer was a flash in the pan hedge fund manager for a few years. And since he has had a public persona and a TV show, his investment recommendations sport a below average return.
I have no idea why Cramer is so rude and disrespectful, but I would never bet against Buffett.
And for all the people worried about high oil prices, they will probably rise and then come down some, as the always have. In the meantime, there are hybrid cars and smaller cars. I think people will downsize. I don't see much of a long term effect on personal spending.
Mar 2, 2011 3:37PM
If Jim Cramer wants to see "dysfunction" I'd suggest he look in the mirror.
Mar 2, 2011 2:34PM
Cramer is wrong about Buffet - Warren Buffet is NOT a stock trader, but is a long term investor. There is a very big difference.
Mar 2, 2011 3:15PM

Wow...I have only posted once before.  Cramer is completely disrespectful, and his use of words like "clown", "idiot', "dope" and "stooge" exemplify what is wrong with America.  I dare him to visit Buffett and say these things to his face.  He sounds like a teenager, or worse, a Charlie Sheen wannabe.  For the record, I am done reading his articles. 


A couple of last notes: 


1) he doesn't get the railroad investment.  When electric engines are pulling everything and the right of ways are populated with windmills and solar panels, maybe he'll get it.  Take a look at how rich people with land are getting for leasing to windmills.


2) the rest of his hypothesis are the ranting of a man on drugs


3) his insinuation in the last paragraph that Buffett is running a Ponzi scheme is, literally, criminal libel.  I am as close to a moron as you can get, and all I could read into his comment was that he thinks Buffett is pulling a Madoff.  You better have proof, or you are going to lose a very big lawsuit.  Really smart, publicly accusing someone of criminal conduct with no proof.  As a holder of BRK I should sue him, but I bet right now Buffet is lining up the lawyers.

Mar 2, 2011 1:54PM
Mar 2, 2011 2:07PM
I didn't think anyone even listened to Krummer after he failed to see the crash of 2007.  He lost all credibility with me after that.
Mar 2, 2011 3:26PM
Cramer has to be back to the old days of drugging it up again. He is the one who is a camera hound and the biggest "pump and dump" azz clown there is.
Mar 2, 2011 1:31PM

Pretty weird. Hard to tell whether he's slamming the idea of listening to Wall Street commentators (like him), since that's the people he is suggesting Buffet should be following, or whether he really means it.  If he means this stuff, all I can say is that Buffet has a much better investing record than him or any other Wall Street commentator. Also, I'd trust his integrity a lot further than Cramer's.

Mar 2, 2011 1:49PM
Loved the sarcastic humor.   Apparently some people didn't get it.  Some people never will.  I think I will stick with Warren and you.  You two have helped me make a lot of money in the past three years.  Thanks.
Mar 2, 2011 1:25PM

Sounds like Cramer is jealous of Buffett! Eye-rolling


And he obviously isn't nearly as smart! Confused

Mar 2, 2011 11:14AM
What kind of tea is Cramer drinkind???????????????????????????????????
Mar 2, 2011 11:19AM
wow - didn;t anyone warn Cramer about mixing his antidepressants?  This grade school rant is an example of the interactive synergies of mixing prescription medicine.  I suppose your going to start screaming,   Get out if you can't afford to lose everything!!!!  Better check in before you get an investor  intervention.
Mar 2, 2011 3:29PM
Seriously???  Are there really this many people who are incapable of identifying sarcasm when they see it?  IT IS A SARCASTIC ARTICLE.  I hope many of you are better investors than you are readers.
Mar 2, 2011 4:48PM

What is Cramer's net worth as compared to Buffet's? Let's see, who should we listen to?

Mar 2, 2011 3:17PM
I thought that this was some kind of sarcastic joke, but then there's not punch line at the end.  This guy is just jealous that Buffet is better than he is at investing. 
Mar 2, 2011 3:32PM

Cramer wants page views to sell advertising.


A great way to get someone to click on your article is to slam Warren Buffett in the headline.


How many times do you see "Buffett" in online headlines these days? Buffett should be collecting royalties for the use of his name.

Mar 2, 2011 1:47PM
Buffet is a value, long term investor.  Cramer is a growth, short term trader.  They are very different styles but I am a little surprised that Cramer is so unusually pessimistic.
Mar 2, 2011 3:04PM
I think before cramer talks about Buffet, he should talk about how many people he's wipe out or caused to loose alot...
Mar 2, 2011 2:07PM
You people wouldn't know sarcasm if it hit you in the head.  He is pointing out that Buffet has always gone against the herd mentality and has profited hansomely.  Come on people.
Mar 2, 2011 4:52PM
Who was the bull leader on sticking with the FAILING banks?? I'll take Buffett's track record over this tard's any day.
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