The American broadcaster, Max Keiser, who fronts the financial programme Keiser Report on RT UK, has claimed that Buffett’s annual letter to Berkshire Hathaway shareholders is proof that the investment titan is an “unmitigated fraud and charlatan reliant entirely on taxpayer bailouts and accounting tricks”.
The letter revealed that Berkshire Hathaway was buying back stock in its own companies last year. Also known as a share repurchase it is when a company buys its own outstanding shares to reduce the number of shares available on the open market. Doing this allows companies to inflate their own stock price and is broadly viewed as a sign that the company’s own stock is undervalued.
After the 1929 stock market crash, the US Securities and Exchange Commission (SEC) viewed buybacks as being close to criminal. Under the Reagan administration, the SEC began to relax the rules. The SEC chairman from 1981 until 1987, John Shad, believed that the deregulation of securities markets would be better for the economy.
A Harvard Business Review article, “Profits Without Prosperity” by William Lazonick, a professor of economics at the University of Massachusetts, stated that buybacks are a form of “stock price manipulation”
It’s pure fraud,” said Keiser. “Its sole purpose is to commit accounting fraud for the benefit of insiders.”
The Masses Are Moving To Bitcoin
Buffett’s ridicule of cryptocurrencies is widely known, he’s called Bitcoin “rat poison” and “an asset that creates nothing.” Keiser said that there is “no bigger rat” than Warren Buffett. In the letter, Buffett scoffed at gold, saying that the the “magical metal” is a poor investment choice. “
Keiser said: “The world is waking up. The Ponzi schemes of Buffett are being revealed and the masses are moving to hard money like bitcoin and gold. The real story is to put gold in context and understand that Buffett’s so-called success is entirely driven by a cozy relationship with Wall Street and the Fed that gives him virtually unlimited access to credit carrying zero percent interest”
In 2011, when Bitcoin was a mere $1, Keiser predicted that it will reach $100 000. He still stands by that saying: “ We will see $100 000 for Bitcoin as it swallows up the world’s over supply of worthless fiat money, marking the end of charlatans like warren Buffett”.