THE BLOG
03/01/2012 12:28 pm ET Updated May 01, 2012

Obama-Buffett 2012?

Now that Warren Buffet has a secret successor, it is tempting to wonder what he will do next.

How about this: He should do in fact what he has done in function for the last three years: Go to Washington and be the economic point man for the Obama administration.

Before Buffett, Obama did not really have much of an economic program besides telling Joe the Plumber he wanted to make things more "fair" by taking from the rich and giving to the poor.

Even if that meant federal revenues actually going down -- as punitive tax rates make happen.

Envy -- I mean fairness -- trumps all. At least that is what Obama said.

But, even many Republicans did not take him seriously: Raising taxes in a recession? No one is crazy enough to do that.

Then along came Buffett and his famous secretary. Of course, Buffett said, raising taxes is a great idea. Why is it fair, he wondered, that he paid lower tax rates than his secretary?

Overnight, Buffett became the lead spokesman for Obama, Biden, Clinton, Geithner, and the rest of the 'we are not taxed enough' club. The working press loved it: No tax idea was too screwy, too high, or too anything: Buffett liked it, and that was enough.

And why not? Buffett is the miracle worker. The seer of the future. He's never wrong, right?

Wrong.

Whatever Buffett used to be, he is not anymore. Hasn't been for quite some time.

Since Obama took office three years ago, Buffett's track record of picking winners and losers has been absolutely dismal:

Click HERE to view Buffett's track record over the last 1, 3, 5, and 10 years.

Berkshire Hathaway (BRK-B) is down 5.7% over the last twelve months. By contrast, the S&P 500 is up 3.5%. That's a differnetial of 8.2%. Not good.

Over the last three years, Berkshire has delivered annual average returns of 16.0%, while the S&P has averaged 21.9%. Buffett has been losing out to the index by a large margin during this time period.

Over the last five years Buffet's holding company has delivered an average annual return of 2.4% while the S&P has average -1.2%. Not a track record to be real proud of.

Buffett has been living on his reputation. And the same reporters who followed President Obama to Solyndra without once checking the internet to find out the company's own auditor said it was no longer a "going concern," are now fawning over Buffett and his 'soak the rich' pronouncements as if they had the authority of a guy who knows how the economy works.


Maybe he did. Long, long ago.

Not anymore.

But he talks as if he still does. Well, that's fine. If he is going to be a spokesman, a creator, a Godfather, let him to go Washington and tell us all about it: In public. Before reporters. In front of Congress.

Instead of hiding behind the folksy -- faux -- personality from the corn fields
he trots out whenever it is convenient.

Whenever he does not want to explain the unexplainable.

Just because you successor is a secret, that doesn't mean your plan to raise taxes, increase spending, and turn the economy over to socialists who never had a real job has to be.

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