Buffet went all in on stocks
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KB
Diamond Member
- Nov 8, 1999
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The news in a couple weeks will be:
"Warren Buffet Ex-Billionaire has been downgraded to only a millionaire."
Actually I agree with Buffet in this case. I still think the DOW will drop some more, and there are some deals on wall street right now. I completely agree with his quote:
"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful," said Buffett. "And most certainly, fear is now widespread, gripping even seasoned investors."
"Warren Buffet Ex-Billionaire has been downgraded to only a millionaire."
Actually I agree with Buffet in this case. I still think the DOW will drop some more, and there are some deals on wall street right now. I completely agree with his quote:
"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful," said Buffett. "And most certainly, fear is now widespread, gripping even seasoned investors."
There are DEFINITELY some sound companies out there whose stocks have been battered by general market instability that would be nice to purchase.
I will be waiting for more stability. Once we get to 10k again and reduce these wild swings to 1% or less either way, I will rediversify back into stocks. For now, I am happy with my meager 1% growth on the year... it beats losing 20% per year
I will be waiting for more stability. Once we get to 10k again and reduce these wild swings to 1% or less either way, I will rediversify back into stocks. For now, I am happy with my meager 1% growth on the year... it beats losing 20% per year
If you have a lot of liquidity right now and are looking for long term investments, this is a very good time to buy stocks.
I reread Buffett's article and am I correct in asserting the following?:
- he thinks deflation is not going to be a signficant long term issue (moving his personal porfolio out of U. S. Treasuries, which would be "big dollars" in a deflationary spiral I believe, into stocks)
- inflation, but not necessarily hyper-inflation will be an issue going forward (comments about cash equivalents not holding their value over time)
- he thinks deflation is not going to be a signficant long term issue (moving his personal porfolio out of U. S. Treasuries, which would be "big dollars" in a deflationary spiral I believe, into stocks)
- inflation, but not necessarily hyper-inflation will be an issue going forward (comments about cash equivalents not holding their value over time)
I think he also might be echoing the politically tone deaf to Main Street, but probably true for U. S. corporations as a whole, that the fundamentals are (relatively) sound, that, as Buffett put it, this is a world class athlete who had a sudden cardiac arrest and needs time to heal, or that this financial crisis is a cancer that has to be excised for the healthy remaining part of the body to flourish down the road (before this "subprime" crisis, I remember to hear over and over again about how strong balances sheets for U. S. companies were and how they were so flush with cash from all the tax breaks and other giveaways the Bush administration has apparently given them in the past).
ponyo
Lifer
- Feb 14, 2002
- 19,689
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Originally posted by: Skoorb
LOL, I'm actually considering buying some stocks in exactly that
Naustica
It's true his fund isn't "almost entirely" stocks, though.
I read his actual opinion piece last night on the NY Times. He said he has started to buy US stocks and will buy more if it goes down. He's not all in.
First
Lifer
- Jun 3, 2002
- 10,518
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And he is 100% right as usual. This is a fantastic time to buy at a discount, and this may not even be the bottom. We could see a (lower) and prolonged bottom for many more months, might not even sniff 10,000 until the end of next year. But it's a great time to buy, especially if you're looking at financial stocks (though, of course, they're extremely risky).
DrPizza
Administrator Elite Member Goat Whisperer
Just mentioning that buffet went all in on the stock market will really help raise confidence in the stock market. Sort of like the expression, if you see the guy who defuses bombs running away, try to keep up. Except in reverse in this case.
The best line in that article is: "If you wait for robins spring will already be gone" ~
The article unfortunately fell on deaf ears today, in another 12 months though we will probably hear a resounding DOH from everyone that stood on the sidelines.
If you want to make money and sleep at night think bread and butter not super duper cool widget from outer space.
The article unfortunately fell on deaf ears today, in another 12 months though we will probably hear a resounding DOH from everyone that stood on the sidelines.
If you want to make money and sleep at night think bread and butter not super duper cool widget from outer space.
If you want to play it safe just buy an S&P 500 index mutual fund or ETF. The index has lost all of the post-dot-com gains so it's a bargain if you're a buy and hold investor. It's a safer long-term bet on the market as a whole instead of trying to guess which specific sectors will recover fastest or the most.
Short-term, who knows? The only thing that's certain is all of the innnocents have already moved their money to cash, bonds and gold. They'll hold there until they've safely missed all the gains from buying stocks low, now.
Short-term, who knows? The only thing that's certain is all of the innnocents have already moved their money to cash, bonds and gold. They'll hold there until they've safely missed all the gains from buying stocks low, now.
LunarRay
Diamond Member
- Mar 2, 2003
- 9,993
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Folks like Buffet can influence the market activity to a great extent. The little guy sees big money jumping in via some statement that is self serving and in they go... usually late and usually they make the least and lose the most (percentage wise).
A deflation spiral is no easy thing to stop but the Buffets are doing what ought to be done .. change the mind set of the consumer. There is no doubt that deflation can feed on itself while it devours the big guy while inflation eats on the little guy mainly but is controllable.
I'm way too poor to invest in anything so I don't have that kind of stress... :+) But, if I did have the money I'd be looking at earth bits.
A deflation spiral is no easy thing to stop but the Buffets are doing what ought to be done .. change the mind set of the consumer. There is no doubt that deflation can feed on itself while it devours the big guy while inflation eats on the little guy mainly but is controllable.
I'm way too poor to invest in anything so I don't have that kind of stress... :+) But, if I did have the money I'd be looking at earth bits.
Will even a lot of optimists are saying the Dow will probably drop to 7000 next year but there will be a nice rally first. It's just a lot of the pessimists are predicting much lower than that, possibly even 4000. The actual bottom is probably in between somewhere.
Atomic Playboy
Lifer
- Feb 6, 2007
- 16,432
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Isn't Buffett getting pretty old? When you reach a certain age, you inevitably stop thinking about long-term investments (10 years or more), as you probably won't be around that long. Not that Buffett has anything to worry about, as you'd have to fuck up pretty bad to lose 60 billion dollars, but still, you wouldn't think he'd be looking at long-term investments at this point.
But there's a reason he's worth billions, and it certainly isn't because he takes investment advice from me...
But there's a reason he's worth billions, and it certainly isn't because he takes investment advice from me...
What I like about Buffet's advice is that it's actually pretty simple, the reason everyone isn't a billionaire like him is that it's hard advice to actually follow because it requires a non-emotional approach to investing, which seems to be extremely hard for most people. People get a good feeling from investing when the market is "good", and a bad feeling from investing when the market is "bad". That's natural, but it's the wrong way to think about investing. Your portfolio isn't supposed to give you a warm, fuzzy feeling...it's supposed to make you money. You don't want high value shares so much as you want shares that are worth more than you paid for them, and now is the best time to buy to make sure that happens.
The funny thing is that I think most people understand Buffet's logic, it's just that we're trained (in part by the news trying to make the market an exciting, day-to-day thing to cover) that market up = good and market down = bad.
The funny thing is that I think most people understand Buffet's logic, it's just that we're trained (in part by the news trying to make the market an exciting, day-to-day thing to cover) that market up = good and market down = bad.
Of course Buffet is investing long term - he's investing on behalf of the people who own his fund, not just his own money, which is in the same fund.
Buffet isn't investing for money to spend.
He's investing for his clients.
blackangst1
Lifer
- Feb 23, 2005
- 22,914
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Originally posted by: 351Cleveland
There are DEFINITELY some sound companies out there whose stocks have been battered by general market instability that would be nice to purchase.
I will be waiting for more stability. Once we get to 10k again and reduce these wild swings to 1% or less either way, I will rediversify back into stocks. For now, I am happy with my meager 1% growth on the year... it beats losing 20% per year
If you are confident it will return to 10k why wouldnt you buy for less now? That doesnt even make sense.
edit: *intention* to, and moving towards, 100%
Common investing strategy:
High interest rates ? buy bonds & sell stocks
Low interest rates ? buy stocks & sell bonds (bonus, market crash cheaper to by stock)
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