Gartman: ‘Warren Buffett Is an Idiot’
The man behind the Gartman Letter seems to be aiming some none-too-subtle barbs at everyman billionaire Warren Buffett of late.
Yesterday, 24/7 Wall Street ─ a financial blog we like to watch ─ noted that Dennis Gartman appeared on CNBC’s “Power Lunch,” saying that Buffett’s beloved Berkshire Hathaway would make a good candidate for short selling.
“Wha-wha?” you say? Well, maybe it’s not such a crazy idea.
The blog’s Jon Ogg takes a look at Berkshire’s chart, and writes:
This stock is definitely an ugly duckling. In the last few days it has failed its 50-day moving average (currently $90,784.82). We heard Mr. Gartman being “short of Berkshire” last month … On a simple chart, there does not appear to be any major simple support lines under $88,000 until about $85,000.
MarketBeat is not quite ready to bet against the Oracle anytime soon. But Gartman seems to have some personal thoughts on the beloved investment guru. In an interview following a speech in Oregon this month, he took issue with “buy and hold” and one of the strategy’s best known practitioners. The Oregonian reports:
“Warren Buffett is an idiot, ” he said, emphatically, in a short interview after the speech. “Shame on Warren Buffett. That’ll be a good quote for your article.”
Yet, Gartman admits to being wrong with two-thirds of his trades. He says his winners are big ones and make up for the losses. [Burton Malkiel, the Princeton economics professor and author of ‘A Random Walk Down Wall Street,’], for his part, shakes his head at this.
“There is a bit of momentum in the market,” Malkiel said Friday via e-mail. “So his (buy going up, sell going down) rule could be plausible. But after taxes and transactions costs, an individual investor is highly unlikely to come out ahead. And momentum strategies often do not work even before taxes and transaction costs.”
What do you guys think? Would you short Warren Buffett? And more broadly, do you still believe in “buy-and-hold?”