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By MisterMarket
August 4, 2008

Posts selected for this feature rarely stand alone. They are usually a part of an ongoing thread, and are out of context when presented here. The material should be read in that light. How are these posts selected? Click here to find out and nominate a post yourself!

A very interesting piece in the WSJ today titled, "What is a 'Windfall' Profit?

I'll leave the politics out of the post, but thought the reference may be interesting to the gang here, given our WEB's public support for Obama.

The editorial is soliciting a definition from Obama et al on the exact definition of Windfall profits...given his stumping on a windfall profits tax.

For instance, the article clarifies that Exxon Mobil had 2007 profit margins of 10%. Which is in-line with some other industries..."Take aerospace or machinery -- both 8.2% in 2007. Chemicals had an average margin of 12.7%. Computers: 13.7%. Electronics and appliances: 14.5%. Pharmaceuticals (18.4%) and beverages and tobacco (19.1%)..."

The editorial goes on to suggest that this windfall profits scythe may cut a little close to the camp...given WEB's public support of Obama. "If Senator Obama is as exercised about 'outrageous' profits as he says he is, he might also have to turn on a few liberal darlings. Oh say, Berkshire Hathaway. Warren Buffett's outfit pulled in $11 billion last year, up 29% from 2006. Its profit margin -- if that's the relevant figure -- was 11.47%, which beats out the American oil companies."

I know that the WSJ editorial staff have taken jabs at WEB before, but always for the obvious or apparent disconnect between what he does (and has done as a capitalist for the last 5 decades) and what he sometimes stands for publicly. To be sure, we all have the right to independent thought and action, WEB is no different.

However, as a long time follower of WEB and shareholder, I must admit that I find his public support for candidacies intriguing to say the least, especially when the candidates rail against the very capitalist notions that he has been applying for nearly his entire life.

Oh well.
Mistermarket