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An Expensive Buffet Dinner

Salida Capital, a Toronto-based investment firm, won an auction for a steak lunch with Warren Buffett. The price of the lunch? Almost $2 million Canadian. The money goes to the Glide Foundation, a nonprofit group in San Francisco.

How much is lunch with Warren really worth? It depends on the year.

Year Winning Bid (USD)

2000 $25,000
2001 $18,000
2002 $25,000
2003 $250,100
2004 $202,100
2005 $351,100
2006 $620,100
2007 $650,100
2008 $2,110,100
2009 $1,680,300

Salida does offer some interesting fund performance data here although they will only accept direct investments in units of at least $1 million.

Buy on Fear

A friend passed along this opinion piece written by Warren Buffett. The article reads, in part:

A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation”™s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now.

I doubt that we are at the bottom but I did start to buy equities again. This morning. Blue chips only.