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Buffet says US equities the way to go

Discussion in 'General Investing Discussion' started by austing, 18th Oct, 2008.

  1. austing

    austing Well-Known Member

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    Just common sense in regard to quality equities in general in the current market I thought:

    "4:03 AM, 18 Oct 2008


    Buffet says US equities the way to go

    Billionaire investor Warren Buffet has urged investors to buy US stocks despite the current volatility, saying concerns regarding the prospects of Wall St's heavyweight companies were baseless.

    In an opinion piece published in the New York Times, Mr Buffet said he was buying US stocks and the stock markets would recover in the long term.

    "So ... I've been buying American stocks. This is my personal account I'm talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy), " Mr Buffet wrote.

    "If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities, " he added. Mr Buffet said that his decision was grounded in his personal investment philosophy.

    "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful,"

    Mr Buffet said. "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," Mr Buffett wrote. Mr Buffet also warned investors that opting to hold cash equivalents instead of securities was fraught with danger.

    " 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," Mr Buffet said."
     
  2. Billv

    Billv Getting there

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    He is right but people aren't going for returns, they are looking for safety
     
  3. crc_error

    crc_error The Rule of 72

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    funny thing is it isn't safety at all.. its a false sence of security.
     
  4. Billv

    Billv Getting there

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    Not really, my super didn't lose anything while in cash
    If I had left it in shares it would have been down at least by 10% last year and another 10% so far this year
     
  5. Norak Bastiat

    Norak Bastiat Well-Known Member

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    The strange thing is Buffet claims to be putting his personal money into US shares with the hope of making a profit in the long term. However, Buffet I think is in his 70s! Surely he is in no position to be investing for the long term. However, he did say he would give nearly all his money to charity (highly commendable) he really is investing for the sake of many lives.