Doug Kass, the short-seller who came out ahead by betting against Berkshire Hathaway last year, has some new criticism of Warren Buffett and his investment style.
The quote: "It's never paid to bet against America... We come through things, but it's not always a smooth ride... This is an economic Pearl Harbor."
Kass responds: "In 2008 and (so far) 2009, The Oracle of Omaha has been wrong; it has paid to bet against America... The U.S. 'economic Pearl Harbor' has humanized and brought down to earth many of the smartest investors in the world," including Warren Buffett and a long list of other well-known names.
Kass laments he may have been "premature" when he profitably covered a short position he put on Berkshire last year as it traded around $140,000. Today, it is around $87,000.
He cites "the recent deterioration" of stocks in the Berkshire portfolio, including a $4.5 billion drop in the value of its Well Fargo holdings since December 1. Berkshire's stake in U.S. Bancorp is worth $1 billion less. Both Wells and USB have lost half their value in under two months.