Friday, Oct 17, 2008
Berkshire Hathaway CEO gives advice on how to invest during America's money crisis in a New York..
CNN: Buffett: I'm buying stocks
Billionaire investor Warren Buffett used a guest commentary article in the New York Times on Friday to announce that he's sticking with stocks.
Buffett, the so-called Oracle of Omaha for his ability to buy up the right companies at the right time for his holding company Berkshire Hathaway (BRK.A), said the worst may not be over for the faltering economy.
"In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary," Buffett wrote.
But for that reason, the Berkshire CEO said, he has converted his personal portfolio almost entirely to U.S. stocks. Previously, he said he owned nothing but Treasury bonds.
Posted by mark @ 03:36 PM (1404 views) Add Comment
30 Comments
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1. str 2007 said...
Well time will tell if he's right again.
Clearly alot of Blue Chips will get through intact and I did notice that through the 90's recession the ftse increased steadily from the '87 crash.
If it's anything like as bad as some here suggest he may well be a bit early.
WB doesn't say which stocks he actually bought.
2. cornishman said...
Given that the man can dictate terms for whatever he buys, he will probably come out of this well. I agree with str2007, I think it's still too early for the average Joe.
Also - given the wheels within wheels here, I wonder how much of this 'recommendation' is political spin.
3. mark said...
think BA and Barclays both are good buys
4. matt_the_hat said...
He's going to be dead in 5 years and has no interest on passing on his personal wealth. This might be his equivalence of giving to charity.
5. mark said...
this guys talks a lot of sense, i agree now is th time to buy, when it is not quite the bottom, the best time to make money.......... if you wait for bottom you chance missing it and buying on up this can cost more...
6. matt_the_hat said...
Anyone who thinks buying into an airline needs their head examining
7. mark said...
matt maybe i do, but they said the same last week when i bought barclays at 1.90 and made a killing....
8. malct said...
buffet is too close to Jacob Rothschild, Soros and Arnie Snortshisfinger to be charitable
9. matt_the_hat said...
Mark, I myself have bought HBOS and have not therefore please don't take my advice, just don't think airlines and football clubs are real businesses, all you need is one plane or one match to go wrong and Kaput
10. mark said...
matt think positive BA are a good company people have to fly and our govt are certainly doing a lot of that now they are pretending to fix world economy
11. mark said...
just made 6% on the day for BA... will buy them back monday and do the same......
12. malct said...
mark, with respect, people can't fly.
Being conditioned into thinking it's normal for people to fly may well be part of the problem
but I know what you mean, no offence intended
13. mark said...
lol trust you malct.... then again do you watch heroes? people fly on that...lol
14. matt_the_hat said...
Mark my words - day trading is a mugs game - go for long term sustainable profits - one day can cancel out a months day trading gains
15. mark said...
matt one thing to bear in mind about BA, they will pick up routes or customers from bankrupt companies
16. layers said...
Well congratulations Mark, you must truly have your finger on the pulse, and seriously I do admire your nerve to trade in this market - did you take your profits or are you just 'on paper' making a 'killing'?
Personnaly I think we're way off the bottom yet, but then I'm not gambling either. Also, Buffet is far too in the know and as Cornishman says it could all be spin. Imagine, US elections coming up, PTB want the sheeple to start feeling good and not hound them in the steets - so wheel out Buffet (aren't we all conditioned to think he's the independent 'Sage' - for Fuc*s sake), saying he's buying, but caveat it with comments about the bottom not quite being there, and 'hey presto' you have people slowly entering the market again. Assuming they have any cash. Or maybe it's signal to those with money to now ride a moderate Bull market.
jeez, forget the blo*dy (literally eh?) stock market as an instant source of wealth for Joe Ignorati 'cos it doesn't work like that unless you get lucky - IMO
Sure there could well be the Mother of all Dead Cat Bounces, but can YOU really time it? Personnaly I can't, and good luck to those who try (and aren't in the magic circle). Just don't say you haven't been warned.
Next week: "How to perform your own brain surgery when you're seriously already ill" Professor, von ex-Nazi cult, turned humanitarian.
17. mark said...
i am just doing my thing, as i sit on the computer all day anyway, i can watch the shares, i buy them with a view to selling then buy back when they drop, if they dont drop no problems, if i buy and they drop i just wait it out, again no problems... I did actually say about buying a few weeks ago, so i beat sage to it...lol
I am not timing it, but i really do think the stock market is near bottom as investors will be looking to get back in soon.......... houses are not safe nor is gold, both are likely to drop.... what is left to buy?... what else can you drop 100k into and make a small profit in a week a volatile market of course..........
18. mark said...
layers can i subscribe to how to operate on my own brain whilst awake, using implements found in my kitchen, it sounds like a cool course..........
19. The Retailor said...
Stock market.... you might as well go to a casino or race track same difference
20. layers said...
Mark - good luck to you brother, seriously.
OK, first bit, it's only painful until you get to the brain, then you feel no pain but experience all sorts of odd sudden emotions, which are dependent on the physical location of the incision. Refrain from the egg-whisk until course 7.
;-)
BTW - you didn't answer my question.
21. matt_the_hat said...
Paper is the answer
22. mountain goat said...
Mark glad you made a killing on Barclays. But you took a risk and in my opinion got lucky, if Barclays had gone the way of Llyods, HBOS and RBS you would have lost big time on Monday.
23. yoyo1 said...
BA has a big problem ........ it's pension fund.
24. mark said...
cash, well in the holding account
25. geed said...
I am starting to dabble, but not big sums, less than £5k. Trouble is unless there are +10% swings at low sums, dealing fees eat into your profits, not too mention tax if you are outside an isa.
Mark - big gamble on an airline IMO in this market, not for me but well done. ( saying that I do have recently purchased RBS shares! Banks/Airlines what is the difference these days ;-))
Better than sitting on yur @ss doing nothing.
26. mark said...
geed have a look at www.stocktrade.co.uk they have pretty low fees
27. mountain goat said...
The other thing Buffett said which is not reported in this article is "cash is trash". I agree with that!
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