I don’t think it is a scam. The companies needed cash and Buffett got a good deal. If Buffett thinks US equities are a good long term investment and personally says he is investing in them, is that wrong? It seems like we are full of irrational investors around in the markets - uncertainty seems to be behind every door during the past couple of months. If Warren can lend a rational thought to the markets, it is a good thing. I don’t think he would lie about his personal investing habits, and if by saying that US equities are a good long term investment, having him invest in them personally, and having US equities positively affected because of his moves in the stock markets, it seems like a good thing for everyone. ‘Buffett’ is a brand. People are willing to take capital from him as they know his reputation and have little uncertainty setting up investment terms with him. I don’t think this latest string of deals was inappropriate.
I just read Charlie Munger’s bio (he’s buffett’s outspoken partner). Munger quit practicing law to become a professional investor when he was 38 years old. He had $300k saved up at the time. That was 10 times his annual living expense. According to the CFA level 3 material, if you assumed 3% inflation, he’d need to earn about 13% after tax (~18% pre-tax) just to survive and not eat his capital base. Now… he’s worth $1.5 billion.
Look at the bigger picture. .Buffet’s investment fostering confidence in market. It helps everyone. I wouldn’t mind Buffet making money in the process