Warren Buffet and the Midas touch

Some Sunday fun. Its amusing that the Chinese suit maker Dayang Trands has seen its shares boom after the famous US investor Warren Buffet praised the quality of their work. Amazingly Dayang Trands are mass producers of garments, employing 4,500 staff and making 6 million pieces a year - they are not one of the small scale speciality outfits that tend to be thought the best high value producers in today's textile markets. Better yet, Buffet has not actually bought any shares in the company himself. Its amazing how reliant the investment world remains on superstition and prescription, despite everything we know about what makes businesses successful. In a sense Buffet is the modern day successor to JP Morgan and the house he left behind; Morgan was a financier who arranged many important mergers in the 1890s and 1910s, while a holding by the house he left behind came to be seen as an important vote of confidence in a company.