The cult of King Warren loses its lustre

THERE are not many men, let alone many 84-year-old ones, who people would pay millions of dollars to have lunch with. But Warren Buffett is not your average 84-year-old man.

He is, for many, the epitome of the American dream.

Having started out working in his grandfather’s grocery store, he is now one of the US’s richest men, with a personal fortune of more than $70-billion (about R864-billion.)

Little wonder, then, that people are so keen to have the chance to ask him questions and listen to his thoughts.

Shortly before bidding closed on Friday night, the highest offer in the annual charity auction to enjoy an eight-person lunch with the octogenarian at Smith & Wollensky steakhouse in Manhattan was $1.59-million.

But here’s the thing: last year, the lunch went for $2.16-million, and in 2012, it went for a record $3.45-million. So is Buffett losing his attraction?

The diminished lack of interest in sharing a repast with Buffett is not the only evidence that the Sage of Omaha’s crown is starting to slip. There is also the revelation this week that Buffett’s wealth is dwindling: he has slipped behind Zara impresario Amancio Ortega in Bloomberg’s ranking of the world’s richest people for the first time since the list was first published in 2012. The Spanish retailer is now worth $71.5-billion.

Buffett is still worth $70.2-billion, so he will hardly go hungry. But it might indicate the in- vestor has reached his peak.

Why has his fortune slipped from $75-billion at the turn of the year?

It looks like the losses can be traced back to two of the biggest investments in his investment conglomerate, Berkshire Hathaway. It owns 14.9% of American Express and 9.2% of Coca-Cola. Such large stakes mean the relatively poor fortunes of these firms have hit hard.

Over the past five years, the price of a Berkshire Hathaway “A” share has more than doubled, from $104 950 to $214 602 this week. But in the past five months it has slipped, off slightly more than 5%.

Buffett’s long-term approach is designed to ensure that investments are given time to regroup in the face of adversity. But one has to wonder how long the cult of King Warren can continue. — © The Daily Tele

graph, London