Trippster
16 years ago
If you don't know much about Warren, let me know and I will fill you in.


By WARREN E. BUFFETT
Published: October 16, 2008
Omaha


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Times Topics: Warren E. Buffett

THE financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary.
So ... Ive been buying American stocks. This is my personal account Im talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities.

Why?

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 nations 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.
Let me be clear on one point: I cant predict the short-term movements of the stock market. I havent the faintest idea as to whether stocks will be higher or lower a month or a year from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.

A little history here: During the Depression, the Dow hit its low, 41, on July 8, 1932. Economic conditions, though, kept deteriorating until Franklin D. Roosevelt took office in March 1933. By that time, the market had already advanced 30 percent. Or think back to the early days of World War II, when things were going badly for the United States in Europe and the Pacific. The market hit bottom in April 1942, well before Allied fortunes turned. Again, in the early 1980s, the time to buy stocks was when inflation raged and the economy was in the tank. In short, bad news is an investors best friend. It lets you buy a slice of Americas future at a marked-down price.

Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.
You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain. But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy.

Today people who hold cash equivalents feel comfortable. They shouldnt. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts.

Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzkys advice: I skate to where the puck is going to be, not to where it has been.
I dont like to opine on the stock market, and again I emphasize that I have no idea what the market will do in the short term. Nevertheless, Ill follow the lead of a restaurant that opened in an empty bank building and then advertised: Put your mouth where your money was. Today my money and my mouth both say equities.

Warren E. Buffett is the chief executive of Berkshire Hathaway, a diversified holding company.

He is one of the richest men in the world amassing his fortune almost entirely through the stock market.
"Let Your Light Shine!"
zombieslayer
16 years ago
Trippster - I'll be going all in soon. I'm thinking exactly the same thing. The time to buy stock is now. Just buy and hold.

While everyone else panics, that's the time to buy. If you have additional money, California real estate is very cheap right now.

Good find.
My man Donald Driver
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(thanks to Pack93z for the pic)
2010 will be seen as the beginning of the new Packers dynasty. 🇹🇹 🇲🇲 🇦🇷
4PackGirl
16 years ago
thanks for posting this, tripp. personally, i'm very conservative when it comes to investing so while i won't end up a billionaire, my farmland will keep me & my family comfortable for many years to come. i'm cool with that! 😃
Zero2Cool
16 years ago

thanks for posting this, tripp. personally, i'm very conservative when it comes to investing so while i won't end up a billionaire, my farmland will keep me & my family comfortable for many years to come. i'm cool with that! :D

"4PackGirl" wrote:



I can attest to this. She does not go all in.
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dfosterf (4-May) : FYI civilian companies swipe the S2 designation from the military. S2 is the intelligence branch up to brigade level. G2 is division level.
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beast (4-May) : Seems like the S2 has a love/hate relationship with professional scouts.
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dfosterf (4-May) : Are you gentlemen and at least one lady familiar with the S2 cognition
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Zero2Cool (1-May) : Packers did not activate the fifth-year options for linebacker Quay Walker, with the goal of signing him to a contract extension.
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dfosterf (30-Apr) : How long until Jeff Sperbeck's family sues John Elway ?
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beast (30-Apr) : Sounds like P Luke Elzinga has a rookie try out opportunity from the Titans
dfosterf (30-Apr) : Luke Elzinga Punter Oklahoma stil unsigned. Green Bay has been mentioned as good fit
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Martha Careful (29-Apr) : ty bboystyle...fat fingers
bboystyle (29-Apr) : Tom*
Martha Careful (28-Apr) : RIP Packer Safety Tim Brown
beast (27-Apr) : Yeah, but also some of the wording suggestions Jax only pranked called the QB, not the others... and if he had an open spreadsheet & 3 calls
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Mucky Tundra (27-Apr) : Cowboys 1st round pick Tyler Booker will indeed be bringing his pet turtle to Dallas with him
Mucky Tundra (27-Apr) : that contained all prospects info and contact
Mucky Tundra (27-Apr) : beast, according the Falcons statement Jax came across it on an ipad. If I had to guess, probably an open spread sheet or something
Zero2Cool (27-Apr) : Simmons put up an emoji with cheese.
beast (27-Apr) : Not sure anyone is interested in Isaiah Simmons... Collin Oliver might of taken his potential slot
beast (27-Apr) : I'm going with Jax Ulbrich is not telling the whole truth... he accidentally came across it? Why would a defensive coordinator have a QB #?
Zero2Cool (27-Apr) : He's not that great, but final piece of the script.\
Zero2Cool (27-Apr) : If we add Isaiah Simmons, book your Super Bowl tickets
Mucky Tundra (27-Apr) : Colts 1st round TE Tyler Warren also got prank called, was that Jax Ulbrich as well?
Zero2Cool (27-Apr) : Jax Ulbrich, Jeff Ulbrich’s son, released an apology for his role in the Shedeur Sanders prank call.
Martha Careful (27-Apr) : apparently he did not participate in practice or play on the east west shrine game nor the NFL combine. The kid was a mediocre spoiled brat
Mucky Tundra (27-Apr) : Yeah that one that was a super wounded duck that Sanders supporters are highlighting to prove a point
Zero2Cool (27-Apr) : Shough is the guy who missed guys at combine isn't he?
beast (27-Apr) : It's not official until I'm dead! I have a chance still! (Not really)
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