Warren Buffett’s Berkshire Hathaway is famous on Wall Street for having the cash to make deals happen, even during a crisis. But in 2008, he turned down both Lehman Brothers and AIG when they asked for help. In an interview with WSJ, he explains why….(read more)
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In 2008, the global financial crisis hit the United States hard, and many leading financial institutions were on the verge of collapse. Amid this turmoil, legendary investor Warren Buffett made a crucial decision that would ultimately set him apart from his peers: he said no to Lehman Brothers and AIG.
At the time, both Lehman Brothers and AIG were facing severe financial difficulties and desperately needed a lifeline to stay afloat. Many investors and financial institutions were hesitant to step in and provide assistance, given the uncertainty and risk surrounding the situation.
Warren Buffett, however, made a calculated and strategic decision to walk away from both Lehman Brothers and AIG. Despite being known for his shrewd investment decisions, Buffett recognized the excessive risk and instability within these institutions and refused to get involved.
His refusal to bail out Lehman Brothers and AIG reflected his steadfast commitment to investing only in businesses that he truly understood and believed in. Buffett’s philosophy has always been to avoid risky investments and focus on companies with strong fundamentals and long-term growth potential.
By declining to rescue Lehman Brothers and AIG, Buffett demonstrated his disciplined approach to investing and remained true to his principles, even in the midst of a financial crisis. While many other investors and financial institutions suffered significant losses from their involvement with Lehman Brothers and AIG, Buffett’s refusal to get entangled in these troubled companies ultimately protected his investments and preserved his reputation as a savvy and prudent investor.
In hindsight, Buffett’s decision to steer clear of Lehman Brothers and AIG proved to be incredibly prescient. Both institutions eventually filed for bankruptcy, and their downfall had a widespread impact on the global financial system.
Warren Buffett’s principled stand against bailing out Lehman Brothers and AIG not only shielded his investments from potential losses but also reinforced his reputation as a prudent and perceptive investor. His actions during the 2008 financial crisis serve as a testament to the importance of sticking to one’s investment principles, even in the face of immense pressure and uncertainty.
Ultimately, Warren Buffett’s refusal to rescue Lehman Brothers and AIG highlighted the wisdom of investing with prudence and discipline, and his decision continues to serve as a valuable lesson for investors in navigating tumultuous financial markets.
Bootstrapped and broke millennials running to grandpa to save them
when Henry Paulson asks this guy to bail out Lehman bros its over
what is the connection between Warren buffett and Nancy pelosi ?
Love you warren❤
If a guy like Buffett asks you to send a fax, send a fax…
Mr. Buffet and Mr. Munger are an amazing duo. He knew taking on either of these deals would be too risky. If something looks too good to be true there is ALWAYS a reason.
I would buy the two companies if I have the money so I can brag I am owner of AiG and Lehman
Good thing Mr. Buffett didn't invest in AIG—– they would have royally ripped him off. The AIG Jeffry Epstein types belong in jail, not free, stealing from Americans. I won't quit till I see everyone of AIG executive's in jail with jail mates called Bubba that make these executives into their girl friends. To my dying breath, I curse them for the thieves they all are!
Lehman was reckless af! The feds told them to eat s***. Amazing how quick the rich run to the government for a handout when THEY eff up. Screw them all! Hahahahahah!
The producer of this interview had one job. To give us a well shot and edited interview, but all they did was give us a dim lit behind the scenes of the interview.
The whole freaking country lives on borrowed and interest rates. It's only a matter of time until people realize the whole economy is ready to fall like overripe fruit pulling all their money out of the market. When the market and the banks have to borrow money from other billionaires, you know it couldn't be worse.
Tvi And Interval Internal Org
https://youtu.be/3PpzUFwdB98
W B is the main man
SYMPHONIC INVESTING
GREEN PARK AND HAUZ KHAS SOLD TO NAVEEN BABU…
#AAMAADMIPARTYSHOULDBECEASEDANDCLOSED
It’s a shame Buffett is a little too old to be interested in a Presidential Nomination. What a great President he would make
Just like a real father says NO to hes junky kids and selfhish daughters, to teach them that they were just wasting time away and money was nothing to them. Thats exactly what my dad told me, I never had a trust fund, and he told us when the time came we all had to work for survival, thats it that was our reward, no savings not bonds no cds nothing.
The one and only I respect this man
My friends father in NYC died and left her millions of $ all in Lehman stock. I told her many times to diversify, and she always replied “it’s Lehman!” Sadly she lost it all overnight….
Too big to fail = too stupid to survive.
Now it's happening again
I will not lose hope.
Once you lose confidence in a bank, it’s all over. How true that is.
some one will be doing similar video on behind the scenes for SVB, first republic bank and the future collapsing banks.
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!
Buffett NEVER buys a company with bad ethics or bad culture. Never.
He said NO because he is a smart man.
Wise words
Can anyone tell me why WB is still trying to earn so much at his age? How much of his wealth is he going to give to his children or benefitiaries? Is it logical to suggest he never spent more than 0.1% of his total wealth? So, why is he trying to leave behind more and more when he is already richest? Will this spoil his benefitiaries? Likewise, Munger
He said it himself couldnt come up with that much in such a short time 1 week maybe 1 month, he stayed afloat because he kept it small.simple .
Who's here after the collapse of Silicon Valley Bank?
85 BILLION TAXES WHAT WHITE HOUSE CREW FAMILY AND FRIEND BUY STOCK's ON TAXES !
Hi Marcella, Marcel has had an ok but we had an issue with him swerving again. Does he swear at home? We really need to organise a time we can talk about his behaviour. Let me know when you are free next week? Thanks, Emily
Hi, Marcel has had a lovely day and worked in class, however he was silly going to the bus toinght and pretend the fire alarm in reception, he got on the bus fine with staff and seemed calm, so hopefully he Is ok now, thanks Andrea
Mr Buffet, we've here Mr Sukhi Lala of Dilli – India – ur age – he's here visting first time as his son n grandson hv lost a fortune in 2008 crash /mega-meltdown !!! Hes got a few Qns for u, he mentioned to me,as he's not fluent in English he's requested me to aks u on hus behalf,
What does he do – Mr Sukhi Lala, Ms Nicole ?
Rural India moneylender, since independence!
Aaahh, shylock of India!
Never ever lost a penny inspite of being illiterate!
Sent his sons n grandsons for further studies n set up business in Amerika!
Are they blaming /accusing me for their misfortune, Ms Nicole ?
Not really, he's got an int qn on ur reluctance /hesitation over short selling, Mr Buffet!
Isn't short selling stocks, a custom, routine practice all over the world, borrowing huge sums of monies to sell things u dont hv /posess now, by buying later?
Such as Nicole?
Real estate for one ! Biggest scamsters in Real estate in India, inspite of the tomtommed regulatory reforms – selling flats, residences, commericial, for which the realtor never had any land or if hes got land, monies to buy tht land parcel?
Mr Xi Jinping – China has cracked whip big time on realtir speculators!
Can imagine the dire straits of property buyers in India, from tge manner in which the Chinese premier is causing real disruption! Gunning the big targets – tech billionnaires / realtors etc!
Yess its been a one way market since 1992, inspite of the fx-volatility! Unipolar world perils mirrored, here there everywhere Ms Nicole!
Hopefully Indians'd see real action than bravadi, bluster, one day, perhaps, maybe! Good luck Mr Sukhi Lala!
Another Qn he had is the debilitatingly deleterious impact of big investors/fund managers like u Mr Buffet n Mr Munger adding, multiplying Indians misery, manifold !
Ur bullish stance, accumulating hoarding, he says, Mr Buffet, food stocks, caused the wanton speculation in agri-commodities market – wanton speculation, in essential food grains!
Absolutely unchecked, no regulatory oversight whatsoever, is the bane /curse out there for vast masses !
Well said Mr Buffet – SC – Judges n Lawyers – unelekted rulers, besides permanently in power IAS babuz, the Lt Governors /Governors hvng vast duscretionary powers to manipulate, distort n subvert the voters mandate, – with zero accountability to common pplz, voters, for what its worth yet it is only Sukhi Lala the village money lender is badnaam n all others are heroes?
Maybe Mr Sukhi Lala – u should try to emulate the Grameen Bank – Bangladeshi eg!
That fellow has ruined my ecades old Dhandhoo, Mr Buffet, showering micro finance, left right centre, w/o any security?
Sending goons to recover from the landless poorest of the poor, n he gets a Nobel prize – Sukhi Lala is the ultimate villain!
Kurr bhalaa too hoo buraa Buffet saahib!
What documentary is this ?
warren when your company is $ 600 billion in debt and ready to go under , they will find you anywere in the world !!!!!!!!!!!!!!!!!
illuminattis……
Maybe letting Lehman fail drove the prices of other, more solvent banks down. I wondered at the time if that was what was on Buffett's mind.
I lost $8 dollars…everything I had in the market.
What is he saying in the beginning? What's extraordinarily contagious? I listen to that bit 10 times and have no idea what he's saying!
Lehman Criminals
When this happened Lehman had there corporate jets in the same hangar as the plane I flew. I watched as a group of about 20 people entered our hangar and started taking everything in sight. I told our mechanic to guard his tools and any aircraft parts that were ours. He did and we both got into a yelling match with a couple of those guys. The Lehman aircraft were pulled out of the hangar and pilots I had never seen before started them up and flew away. They also started taking the Lehman mechanic’s tools and other personal property. Only 1 of the mechanics were there that morning and with support from myself and our mechanic we stopped these guys from stealing everyone’s possessions. At times I thought it was going to be a physical attack but cooler heads prevailed. This all happened in 45 minutes and then they were gone.
Interestingly, about 5 days later I got a present from someone an envelope with $5000 in cash. I understand that certain new parts that had been delivered to the hangar after the raid had been sold for $$$ and I was thanked for helping the mechanic keep his toolbox and tools. Thanks
Mr. Buffet absolutely knows a “Bad Deal “ when he sees it . That’s why he’s been so successful.
Let the Free Market sort out the winners and losers; stop bail outs.