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More wise Words from the 'Sage of Omaha'
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purch
Posts: 9,865 Forumite
....actually it's more of the same....Mr Buffet has one basic approach and has stuck to it through thick and thin to great effect.
This is a small sample from an interview published in 'Fortune' magazine....
What should advisors say to investors now?
The answer is you don't want investors to think that what they read today is important in terms of their investment strategy. Their investment strategy should factor in that
(a) if you knew what was going to happen in the economy, you still wouldn't necessarily know what was going to happen in the stock market. And
(b) they can't pick stocks that are better than average.
Stocks are a good thing to own over time. There's only two things you can do wrong: You can buy the wrong ones, and you can buy or sell them at the wrong time. And the truth is you never need to sell them, basically. But they could buy a cross section of American industry, and if a cross section of American industry doesn't work, certainly trying to pick the little beauties here and there isn't going to work either. Then they just have to worry about getting greedy. You know, I always say you should get greedy when others are fearful and fearful when others are greedy. But that's too much to expect. Of course, you shouldn't get greedy when others get greedy and fearful when others get fearful. At a minimum, try to stay away from that.
By your rule, now seems like a good time to be greedy. People are pretty fearful.
You're right. They are going in that direction. That's why stocks are cheaper. Stocks are a better buy today than they were a year ago. Or three years ago.
But you're still bullish about the U.S. for the long term?
The American economy is going to do fine. But it won't do fine every year and every week and every month. I mean, if you don't believe that, forget about buying stocks anyway. But it stands to reason. I mean, we get more productive every year, you know. It's a positive-sum game, long term. And the only way an investor can get killed is by high fees or by trying to outsmart the market.
This is a small sample from an interview published in 'Fortune' magazine....
What should advisors say to investors now?
The answer is you don't want investors to think that what they read today is important in terms of their investment strategy. Their investment strategy should factor in that
(a) if you knew what was going to happen in the economy, you still wouldn't necessarily know what was going to happen in the stock market. And
(b) they can't pick stocks that are better than average.
Stocks are a good thing to own over time. There's only two things you can do wrong: You can buy the wrong ones, and you can buy or sell them at the wrong time. And the truth is you never need to sell them, basically. But they could buy a cross section of American industry, and if a cross section of American industry doesn't work, certainly trying to pick the little beauties here and there isn't going to work either. Then they just have to worry about getting greedy. You know, I always say you should get greedy when others are fearful and fearful when others are greedy. But that's too much to expect. Of course, you shouldn't get greedy when others get greedy and fearful when others get fearful. At a minimum, try to stay away from that.
By your rule, now seems like a good time to be greedy. People are pretty fearful.
You're right. They are going in that direction. That's why stocks are cheaper. Stocks are a better buy today than they were a year ago. Or three years ago.
But you're still bullish about the U.S. for the long term?
The American economy is going to do fine. But it won't do fine every year and every week and every month. I mean, if you don't believe that, forget about buying stocks anyway. But it stands to reason. I mean, we get more productive every year, you know. It's a positive-sum game, long term. And the only way an investor can get killed is by high fees or by trying to outsmart the market.
'In nature, there are neither rewards nor punishments - there are Consequences.'
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Comments
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....actually it's more of the same....Mr Buffet has one basic approach and has stuck to it through thick and thin to great effect.
This is a small sample from an interview published in 'Fortune' magazine....
What should advisors say to investors now?
The answer is you don't want investors to think that what they read today is important in terms of their investment strategy. Their investment strategy should factor in that
(a) if you knew what was going to happen in the economy, you still wouldn't necessarily know what was going to happen in the stock market. And
(b) they can't pick stocks that are better than average.
Stocks are a good thing to own over time. There's only two things you can do wrong: You can buy the wrong ones, and you can buy or sell them at the wrong time. And the truth is you never need to sell them, basically. But they could buy a cross section of American industry, and if a cross section of American industry doesn't work, certainly trying to pick the little beauties here and there isn't going to work either. Then they just have to worry about getting greedy. You know, I always say you should get greedy when others are fearful and fearful when others are greedy. But that's too much to expect. Of course, you shouldn't get greedy when others get greedy and fearful when others get fearful. At a minimum, try to stay away from that.
Not quite true he buys and sells all the time.;)
A present for Purch and all Buffet fans the hand and mind of God revealed.!:rotfl:
http://www.coattailinvestor.com/members/holdings/holdings.aspx?c=BHAre U getting enough Vitamin D in your life!?0 -
What Buffet says and what Buffet does are two different things. Its a little hypocritical really. He looks for value when he buys and sells when the value has gone.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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A present for Purch and all Buffet fans the hand and mind of God revealed.!
When you have FAITH you don't need proof :cool:
Actually when you read the whole interview it is incredibly boring and predictable............which, (although we would all probably like to believe that investing and making $$ is all adrenaline rush), is probably the best way to look at investing over a long term.
P.S. I would 'cut n paste' the whole thing, but I pay £500 a year for my Fullermoney sub and you ain't gettin nuttin for free !!! :eek:'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
When you have FAITH you don't need proof :cool:
Actually when you read the whole interview it is incredibly boring and predictable............which, (although we would all probably like to believe that investing and making $$ is all adrenaline rush), is probably the best way to look at investing over a long term.
P.S. I would 'cut n paste' the whole thing, but I pay £500 a year for my Fullermoney sub and you ain't gettin nuttin for free !!! :eek:
Free here:
http://money.cnn.com/galleries/2008/fortune/0804/gallery.buffett.fortune/index.html?cnn=yes0 -
Why is it that when you guys see the name 'Buffet' you think of 'Warren' whereas I think of 'Jimmy'
Ahhhh ... Margaritaville
ivanI don't care about your first world problems; I have enough of my own!0 -
IvanOpinion wrote: »Why is it that when you guys see the name 'Buffet' you think of 'Warren' whereas I think of 'Jimmy'
Ahhhh ... Margaritaville
ivan
According to a website I looked at (so can't attest to its veracity) :
"He is friends with legendary investor Warren Buffett and they suspect that they are distant cousins, but they have not been able to document this. (Wall Street Journal, 5/2/2005)"
Jimmy might only earn $100M a year, but I bet he has more fun doing it...Imprudent granting of credit is bound to prove just as ruinous to a bank as to any other merchant.
(Ludwig von Mises)0
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