Warren Buffet - "Buy American. I am."

In a op-ed in the New York Times, Warren Buffet has stated that he is moving his own personal money into US equities and out of treasury market. No one can claim a conspiracy here, its his PERSONAL money hes putting at risk, not the money from his hedge fund. In other words, he is going 100% against the stampede of the masses and back into the market.

Not only is Buffet known as the Oracle of Omaha, he has ALWAYS put his money where his mouth is. And given his tremendous wealth, he has a unparalleled record of being right on his calls or else he wouldn't be as ridiculously rich as he already is.

Just more evidence that the "great depression II/economic hysteria" that everyone is believing in is not based in reality. The smart money is moving back into the market.

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.

Let me be clear on one point: I can’t predict the short-term movements of the stock market. I haven’t 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.

Source: www.nytimes.com...

This is big news. Hes playing with his own money, and hes going into the market while everyone else is screaming to run for the hills.

[edit on 17-10-2008 by LowLevelMason]

Buffet is the ultimate opportunist. He is brilliant. My readings of him showed he put all or most of his billions into euros five yrs ago. Now markets are a buyers market, I guess.

I love Buffet too.

He has a buy and hold mentality that suits me perfectly. Make a good reasoned decision, dont jump on bandwagons looking for short term riches, but rather evaluate it carefully on your own, then buy and stand your ground.

Originally posted by jpm1602
My readings of him showed he put all or most of his billions into euros five yrs ago.

Wonder why he'd be moving his money out of Euros now?

LLM, I'm not sure you read the article you're posting. Buffet is saying exactly what anyone with half an investing brain knows - certain companies are priced well right now, and they stand a good chance of going up in the future.

He isn't, however, dispelling any of the discussion many of us have been having at ATS.
As you can see, your Oracle says:

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.

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.

Mr Buffet also said in March:

"By any common sense definition, we are in a recession," Buffett said. "Business is slowing down. We have retail stores in candy, home furnishings and jewelry; across the board, I'm seeing a significant slowdown."

Mr. Buffet not only publicly stated the US was in a recession long before Ms. Yellen indicated as much earlier this week, but in this op-ed piece he stated outright that the situation will get worse.

Warren Buffet telling people that the recession will get worse and that the government is engaging in "inflationary" action should send anyone in their right mind to prepare as necessary. You're right, the man is a financial genius, and he's preparing to put his money where it's likely to be safest in the long run, somewhere it'll be profitable years down the road.

I fail to see how this "proves" whatever point you have about the country's (and the world's) deepening recession.

Actually I read the article, but you don't seem to be. Buffet is going directly against what most are saying on ATS - which is that the great depression II and economic armageddon is right around the corner.

Today people who hold cash equivalents feel comfortable. They shouldn’t. 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.

So everyone who is fleeing to the "safe spots" of the market in anticipating of the great economic crash is wrong and are they need to be investing in the market.

I am amazed at how quickly ATS users can spin something into something its not.

We're not even in a confirmed recession yet, and ATS is telling us the great depression is around the corner. Warren Buffet says now is the time to invest, and yet somehow hes agreeing with ATS.

[edit on 17-10-2008 by LowLevelMason]

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.

Let me be clear on one point: I can’t predict the short-term movements of the stock market. I haven’t 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.

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 Gretzky’s advice: “I skate to where the puck is going to be, not to where it has been.”

You might have read the article but you sure didn't comprehend it! Yes he is moving back into the market and buying where he sees the market moving to in 5-20 years. He even said By any common sense definition, we are in a recession. some thing some of us have been saying for awhile now but some people just didn't listen.

Mr. BUffet is just speculating on where he sees the market moving to in the long run but like he said even he doesn't know what its going to do in a month to the next year or longer.

You haven't proven anything with this and if anyone is spinning anything here lately its you taking this OP-Ed out of context

[edit on 10/17/2008 by Mercenary2007]

[edit on 10/17/2008 by Mercenary2007]

Originally posted by Mercenary2007You might have read the article but you sure didn't comprehend it! Yes he is moving back into the market and buying where he sees the market moving to in 5-20 years. He even said By any common sense definition, we are in a recession. some thing some of us have been saying for awhile now but some people just didn't listen.

Mr. BUffet is just speculating on where he sees the market moving to in the long run but like he said even he doesn't know what its going to do in a month to the next year or longer.

You haven't proven anything with this and if anyone is spinning anything here lately its you taking this OP-Ed out of context

Your not reading or comprehending the article. You want to believe that economic doom is coming, so your ignoring all evidence to the contrary.

In fact I have proven lots with this - that the economic apocalypse the majority of this site is predicting is not likely at all.

I'm reading threads about how people need to stock up on food, guns & ammo and run for the hills. That the collapse of the US markets is just around the corner. That the end of the economic system is at hand.

That is not a recession. That is fear mongering.

Now, I do expect that as it becomes more and more obvious that the economic collapse everyone is hoping for is not occurring, all of a sudden everyone's going to switch to acting like a recession is reason enough to act hysterical.

But its not. Recessions do happen every few years, and its just about that time again.

However, the majority of the posters on this board will continue to be in denial about it.

Again, the ability of the "economic collapse" group to spin things simply amazes me.

[edit on 17-10-2008 by LowLevelMason]

reply to post by LowLevelMason


So tell me, O inimical one, what should one do in the situation most Americans currently find themselves in? Perhaps a family with kids to feed, or a single college student, or anyone otherwise making do with their paycheck and a credit card or two?
Buy a bunch of stocks that may be worth more (depending on what stocks they buy) in 2 years, or 10 years?

How will stocks put food on the table during a recession when jobs will be much harder to come by?
The majority of the "fearmongering" posts you deride advocate making a well stocked pantry of nonperishables, (re)learning to cook/bake instead of relying on storebought, planting a garden, keeping a few days' worth of cash on hand, and other common sense measures for what we're going to face in a couple years.

As much as you don't want to believe it, the economy is in the crapper and it's only going to get worse. Buffet knows it, every economist in the world knows it. It's going to suck for a lot of people for more than just a couple months.

This is ATS. I know you haven't been here very long, but you'll figure out that there are always people who go full tilt weird. I've been here since '03 (under a different name, obviously) and one thing I've discovered is that for all the lunacy scattered about, this place isn't afraid to take what the media won't talk about, talk the hell out of it, and often come to prescient conclusions that turn out to be pretty damn spot on.

A year ago few would have thought we'd see these kinds of numbers on the DJIA, but people were talking about market crashes and recessions on ATS. You would have called them fearmongers, but look where we are now.

What Warren Buffet is doing is completely irrelevant to what the average ATSer should do. We're not billionaires. We have ourselves and our families to feed, shelter, and clothe, and ridiculing people who are trying to prepare to do just that in the coming difficult times is the antithesis to denying ignorance.

reply to post by LowLevelMason


Man you really do need to learn to read and understand what your reading. I quoted your own source. the guy says we are in a recession. and is saying he is moving to were he sees the market in 5-20 years. he even says he has no clue what the market is going to do in the near term. he is planning for the long term. Again the only one spinning things is YOU.

Since you seem to think we have seen the worst of this and everything is going to be ok. We haven't seen the bottom of this. No one knows where the bottom is or when we are going to see it. were is the harm in people stocking up on food? its not like its going to be a waste of money.

Its people like you that cause more harm to society by telling them they have nothing to fear everything is going to be alright the worst is over when its clearly not!

what you call fear mongering is people being prepared in case the bottom truly does fall out. if you don't like reading those threads then don't read them. if you don't agree with people being prepared well that's your opinion and you know what they say about opinions.

and i am reading the article and i understand what he's saying. its an OP-ED which is speculation by the writer. and he is speculating how he sees the market and where its headed. is he right? who knows whats going to happen in 5-20 years.

And your hilarious if you think an OP-ED proves anything. nothing will be proven until 1 of 2 things happen.

1. either the economy completely crashes proving us that are warning about it was right.
2. we come out of a severe recession and the economy is growing again, trust has been restored to the market and between banks.



[edit on 10/17/2008 by Mercenary2007]

Markets crash when the people panic. Mr. Buffet is being the ultimate patriot by encouraging people to not panic.

Our response to market ups and downs dictate whether or not the economy is doomed. Obviously some bad companies are toast, and their employees too. That's unfortunate for the employees.

It's OUR decision whether this is an adjustment or apocalypse. If we panic and make runs on the banks, then economic doom is guaranteed. If we're cool, this dip will be answered with an upswing.

The superior man, when resting in safety, does not forget that danger may come. When in a state of security he does not forget the possibility of ruin. When all is orderly, he does not forget that disorder may come. Thus his person is not endangered, and his States and all their clans are preserved.

Confucius

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Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.

Warren Buffett

----------------------

As much as I appreciate the pearly wisdom of a rich white man that flies around in private jets, I'm betting that the ghost of Confucius will live long after Buffets legacy of disproportionate wealth.

Peace

Originally posted by Mean Red Spider
Mr. Buffet is being the ultimate patriot by encouraging people to not panic.

Excuse me if I don't trust anyone who's got a death grip on that sized wad of dough . . . he didn't get there through altruistic benevolence. Rich people don't give their stuff away . . . be it advice or otherwise.

The fact that he's encouraging people to buy into the market makes me wonder what he's selling.

He is a man of business after all and a loser he is not and he will not lose a penny investing in America just to show that if he can do it, so the scared wealthy financial investors that has gone running away from the US markets can do it too.

But as usual this not even close to the regular Joes in this nation that has no means to "invest in America".

One more thing to add when the big bail out was exclusively for the financial sector the American consumer was forgotten.

Perhaps Mr Buffet also has forgotten that while he can invest in "America" the rest of the nation can not invest in itself.

Now where is the American bail out so they also can invest in "a piece of America" or this is only for the financial VIPs including the foreign investors.

I guess when it comes to Americans citizens we are just the means for the wealthy to be able to keep their high standards of living while we are to pay for the tab.

reply to post by Mean Red Spider


Mr. Buffet is nothing than another fat rat in wall street and thanks to American tax payer he will not lose a penny while "investing in America" as he can afford to invest any where oversea, something that most Americans can not do right now and never will.

Originally posted by Mean Red Spider
Markets crash when the people panic. Mr. Buffet is being the ultimate patriot by encouraging people to not panic.

Our response to market ups and downs dictate whether or not the economy is doomed. Obviously some bad companies are toast, and their employees too. That's unfortunate for the employees.

It's OUR decision whether this is an adjustment or apocalypse. If we panic and make runs on the banks, then economic doom is guaranteed. If we're cool, this dip will be answered with an upswing.

Markets crash when people panic. I can prove you wrong.

First, let's take a look at the one-year performance of the three major equity indices in the U.S.the,:

DJIA
S&P 500 and:
NASDAQ.

Starting with the venerable Dow Jones Industrial Average, found at this link:

Ouch. Even the dumbest, blindest sheeple can't ignore this

...we are able to compute the following:

One-Year Loss: 5300 points

Percent Loss: 40%

Next, we turn to the S&P 500, which of course is a much broader index than the DJIA.

And what has the S&P done during the previous year? Well, let's see:

Oh, just collapsed worse than the DJIA

...from which we can deduce the following:

One-Year Loss: 643 points

Percent Loss: 41%

Finally, we look at that bastion of "Sheeple Gambler Paradise", the NASDAQ.

How has this Dream Making Machine fared over the last fifty-two weeks?

Here's your answer:

NASDAQ: The ultimate "Roach Motel"

...which translates to:

One-Year Loss: 1233 points

Percent Loss: 43%

Did you look at the pretty graphics? Did you see that this "dip" is NOT a "dip" it is a CRASH. OVER 40% OF ALL INDEXES have gone *poof* bye-bye, gone.

People have not been panicking all year. In fact, I am shocked that it has taken this long for people to WAKE UP to the fact that we are already in a CRASH. It may not be a critical mass, 1 day or 1 week crash, but it is a CRASH.

No one with any real sense is going to take a substantial portion of their savings and invest in ANYTHING right now. We still have to wait and see which companies survive. The crash is not over yet.

A billionaire can write off capital losses, it actually helps a billionaire to LOSE some money. But you and I are not billionaires, we do not have the financial stability to throw $40K into the market and let it ride LONG TERM.

Buffett will eventually make money as a result of the economic downfall of America. The majority of Americans won't. That's the reality.

reply to post by anachryon


Talk about over dramatic. You continue your nonsensical fear mongering as if this were the great depression II.

We've lived through recessions before. The last one was in 2001-2002. People aren't in food lines, people aren't struggling to put food on the table. Your believing in the propaganda the media and government teach you again.

"Most" American's dont have it as bad as you'd like them to have it. People do however love to complain and talk about how bad everything is. The vocal minority drown out the silent majority who have no problems what so ever.

As much as you want to believe it, the economy is actually doing fine and may or may not enter a cyclical recession. In any case, its not enough for the panic and hysteria you are trying to stir up.

Your right, this is ATS, which means it always goes overboard on the paranoia and panic. It follows right with the mass media whenever the mass media is preaching doom, which it has been for the last year or so.

A year ago, and every year before that, people on ATS were talking about economic armageddons and depressions. How nice of you to conveniently ignore that the majority of this board has preached that EVERY YEAR since the board has been around. It's bound to be right eventually, but even current circumstances don't match what the board "predicted." No one was talking about a recession, everyone was talking about a great depression. I know, because I've lurked here for years and always got a good laugh out of it.

What Warren buffet is doing is actually very relevant to the average ATSer because it shows that it is indeed not the great depression or even a long recession. Warren Buffet doesn't put his money where he thinks hes going to lose it. Hes in the business of making money, both personally and for his hedge fund. When the smart money starts getting in the market the smart average investor knows its time to follow.

But instead, you'd rather embrace ignorance and talk about how horrible things are and how we're getting closer to economic armageddon. Although I'm sure, again, as its become obvious that you were wrong, that now you just believe in a recession - right?

reply to post by Mercenary2007


Its clear you have yet to read or comprehend anything you've read. Your still towing the economic doom party line without doing any research.

A recession is not some horrible, unforeseen, disaster. They happen quite frequently. In fact, they happen in an almost cyclical manner. A recession is simply a temporary slow down in the economy, although the media enjoys hyping it up like you do.

Your ignoring the fact that neither you nor your fellow doom crowd are talking about a recession, your embracing ignorance on the whole great depression/economic collapse thing. The two have no relation. A recession is normal and can be predicted, a depression is rare and can bring an economy to its knees. Your trying to compare apples and oranges.

The harm on needlessly pushing panic and hysteria and having people "stock up on food" for no reason is that when they really need to, they won't do it. This is not a run for the hills event, and never has been, despite what many threads on this board claim.

What I call fear mongering IS fear mongering. Being prepared isn't hysterically buying food, guns, and ammo as if nuclear armageddon were upon us. Being prepared is having a 6-8 month emergency fund if you lose your job, and having emergency supplies for a natural disaster.

You clearly don't understand the article, but then again, I am no longer phased by how you can spin things. Buffet is saying the hysterical and panic based reactions are not wise and will cause those doing them to lose money, and people should be investing. That is the point. Your embracing ignorance if you can't see that most threads in this forum are telling people to withdrawal their money and put gold bars under their mattress - completely the opposite of what Buffet is saying.

The op-ed does prove that are incorrect, and thanks for showing it. No economic collapse is happening, and a recession may happen.

"Some people have been on the ride for a long time and they begin to question, is this real, or is this just a ride? And other people have remembered, and they come back to us, they say, “Hey - don’t worry, don’t be afraid, ever, because, this is just a ride…”

And we… kill those people.

“Shut him up.”

“We have a lot invested in this ride. Shut him up. Look at my furrows of worry. Look at my big bank account and my family. This just has to be real.”

Bill Hicks..
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The op-ed does prove that are incorrect, and thanks for showing it. No economic collapse is happening, and a recession may happen


Here's who I listen to.....the economic trend analysists that predicted over a year ago what is happening now. These same analysists are predicting economic /dollar collapse and depression.
Until the false pillars of economic house of cards are changed and sound fundementals are put back in place, the death spiral will continue. .02

Originally posted by Pinktip
The op-ed does prove that are incorrect, and thanks for showing it. No economic collapse is happening, and a recession may happen

 

Here's who I listen to.....the economic trend analysists that predicted over a year ago what is happening now. These same analysists are predicting economic /dollar collapse and depression.
Until the false pillars of economic house of cards are changed and sound fundementals are put back in place, the death spiral will continue. .02

I listen to those who have proven themselves to be correct and don't predict doom year after year. I've heard the same "trend analysts" on C2C for years saying "this will be the year" when economic Armageddon happens. Not one of them has been right. In fact, you can already tell those trend analysts are wrong. The dollar is stronger than it has been in quite a long time, and it keeps gaining strength.

I will, however, look at ECONOMISTS who have gotten this exactly right. And none of them are predicting collapse.

Of course it helps to have people like Warren Buffet, who may not be an economists, but he has put all his money where his mouth is.

Anyways, this little experience has made it clear that I just need to stop posting on the economy boards. People aren't interested in hearing anything except what they want to believe, and I don't fit in well with that crowd since I'm more interested in the facts. There is only a small minority of people here who are interested in coming to conclusions based on reality, which isn't as negative as others want it to be. I'll stick to the other boards where people are more rational. I may be popping in every few weeks to point out that were still not in the economic doom so many have so incorrectly predicted, though.

Just remember, economic apocalypse people, maybe if you think about it really hard and hope for it enough, maybe you can get some

[edit on 17-10-2008 by LowLevelMason]