Warren Buffet: Be Fearful When Others Are Greedy, And Be Greedy When Others Are Fearful

In an New York Times editorial on Friday, Warren Buffet tells us:  Buy American, I am.  Mr. Buffet was talking about his personal account which previously held only U.S. Government Bonds.  Now he is putting his money into American stocks.

Why is he doing it?  He lives by this rule:  Be fearful when others are greedy and be greedy when others are fearful.  "Fear is now so widespread, gripping even seasoned investors, but fears regarding the long-term prosperity of the nation's many sound company's make no sense", says this financial guru. 

He goes on to state "I can't predict the short-term movements of the stock market, but it is likely that the market will move higher, perhaps substantially and if you wait for the robins, spring will be over".

I have to listen when this man talks.  He believes cash equivalents aren't where our money should be.  Over the next decade equities will almost certainly outperform cash.  Those investors who are waiting for good news are ignoring Wayne Gretzky's advice:  "I skate to where the puck is going to be, not to where it has been".

To read Buffet's editorial in full click here.

Comments

[forexthinker.com]

The always present news about Warren Buffet, Chairman of Berkshire-Hathaway, make it easy to come to the conclusion that he is a great investor and a fund manager with a wide following among other investors.
Currently, technical market indicators are bearish and so are the fundamentals of the US economy. It will take 3 to 4 months of consecutive rises in the index of leading economic indicators, employment figures, GDP, retail sales, consumer confidence, housing starts, and other economic data to assure investors that a rally in stock prices is real. Many investors will also wait for the next administration to unveil its fiscal and monetary policies.
Mr. Buffet is a long term investor. He doesn’t mind if the market goes down before it rises to higher levels again.