ALL ABOUT THE WARREN

Today, the markets are fairly flat digesting the recent gains. Market internals are slightly red and the sector movers of note are the Oils and the metals, both down 1 to 2%. The brokers are notably lagging today especially in light of the mega merger between Wachovia and Golden West. INTC continues its surge as it is now over 3% higher and taking the SMH with it.

When they aren't drolling on about the recent outperformance of the big cap stocks or interviewing Lay/Langone/Grasso, CNBC is inundating us with all the great goings on in Omaha/Warren and the incredible investment that is Berkshire Hathaway. Why will a company that has a 130B market cap be a great investment in the future? Take note GOOG owners.

I think that Warren does have interesting things to say at times, but the performance of BRK has lagged the broader indexes over the past couple of years by a wide margin. As the chart above shows, he is trailing both the NAZ and the SPX over the last two years by around 20%. It is also not often mentioned that one of Warren's largest position, KO, was double its recent price eight years ago in 1998. Why is that a good use of capital and what are his future plans for KO? Probably not a question that will be asked by any CNBC anchor/reporter any time soon.