Warren Buffet's thoughts: buy American stocks

[pa33]

Original story here: http://www.nytimes.com/2008/10/17/op...=1&oref=slogin

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 nation’s 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.

So, most investor's opinions aren't worth discussing, but in Warren Buffet's case, the guy made most of his fortune during exactly times like these.

If he is buying up American stocks, could he be right yet again?

If the dollar does actually collapse, wouldn't a lot of strong companies still be strong and do very well 5-10 years from now?

Any thoughts?

[ItsTime]

No he is selling American stocks. So he is telling everyone to buy so he has some suckers to sell to. thats my 2 cents

[theoakman]

Buffet also said the worst was over after the Bear Stearns mess. Buffet is buying stocks banking on a bailout to pump the stocks he buys. He's playing a rigged game. You want an honest Billionaire? Jim Rogers. Screw Buffet.

[Chester Copperpot]

No he is selling American stocks. So he is telling everyone to buy so he has some suckers to sell to. thats my 2 cents

Exactly right.

[muh_roads]

No he is selling American stocks. So he is telling everyone to buy so he has some suckers to sell to. thats my 2 cents

The SEC is supposed to go after pump & dumpers. But yeah, they always turn a blind eye to the uber wealthy.

[pa33]

Buffet also said the worst was over after the Bear Stearns mess. Buffet is buying stocks banking on a bailout to pump the stocks he buys. He's playing a rigged game. You want an honest Billionaire? Jim Rogers. Screw Buffet.

But the bailouts so far have caused the stock prices to plummet. Didn't FNM fall from $9 to < $1 after the bailout announcement? Similarly for AIG

[muh_roads]

But the bailouts so far have caused the stock prices to plummet. Didn't FNM fall from $9 to < $1 after the bailout announcement? Similarly for AIG

The claim is that the money from the bailout hasn't exchanged hands yet. So maybe Buffet is onto something, he knows that money is about to work. (Probably just for a few more dead cat bounces which is all he wants to profit from)

I do like his quote at the very least..."be fearful when everyone is greedy, and be greedy when everyone is fearful".

[ItsTime]

The SEC is supposed to go after pump & dumpers. But yeah, they always turn a blind eye to the uber wealthy.

Well he is not pumping any one stock. I dont know the laws on that though.

[Brian4Liberty]

It's simply an attempt to restore confidence in the markets...

[wizardwatson]

Trust/Believe half of what you see, and none of what you hear.

Never more true in these times.

[cheapseats]

Trust/Believe half of what you see, and none of what you hear.

Never more true in these times.

Amen. About the only thing with which we continually run surpluses is bull$#@!. If it isn't coming from someone for whom you can personally vouch, I can't imagine ANYONE taking ANYONE'S word for anything.

That said, a market like this is well known to present buying opportunities. This is where/how/when Bottom Feeders make their fortunes.

Like always, though, it takes money to make money.

[icon124]

There is plenty of money to be made right now...foreign and domestic