05/06/09 - 11:44 AM EDT
Doug Kass "But break, my heart, for I must hold my tongue."-- Hamlet, William Shakespeare's Hamlet
Warren Buffett -- our sometime brother, now our Oracle -- doth protest too much methinks in his statement during the Berkshire Hathaway (BRK.A Quote) Annual Shareholders' Meeting, in which he remarked that Wells Fargo (WFC Quote) did not need more capital. According to Bloomberg, Wells Fargo actually does need more capital.
Warren Buffett's comments regarding the limited capital needs of Wells Fargo over the weekend -- he said he did his own stress test -- helped to fuel a remarkable surge in Wells Fargo's shares, in bank stocks and in the market on Monday.
It is my view that, in part, the response to Buffett "talking his book" is contributing to a short-term topping process. As I have mentioned in The Edge (my exclusive RealMoney Silver trading diary) over the past coupe of days, investors should begin repositioning their portfolios with more cash and less flash, as, faster than Superman, greed has now replaced fear.
"My honored lord, I will most humbly take my leave of you."-- Polonius, William Shakespeare's Hamlet
At best, Warren Buffet's remarks were disingenuous.
At worst, as Ophelia related in Act III, Scene I in William Shakespeare's Hamlet, "O! What a noble mind is here o'erthrown!"
Be thou familiar, but by no means vulgar, Warren.
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