I think Gordon Gecko was on to something, greed is good. In fact, the combination of greed and fear are even better, or at least they are telltale signs, it seems – for when to enter or exit the market.
Amidst the financial turmoil, Charlie Rose recently interviewed Warren Buffett regarding his thoughts regarding the financial crisis we’re facing as well as to discuss his $3 Billion investment in GE.
A Conversation with Warren Buffet courtesy of Charlie Rose
I happen to like Warren Buffett a great deal. He’s smart yet humble. Sometimes it is difficult to believe that this folksy cornhusker is a billionaire. When Warren pulls the trigger on an investment – and they are generally not small in size – people stand up and take notice. Clearly, you don’t become the wealthiest American by shooting from the hip.
Headlines today indicated that Warren is telling everyone to buy US stocks. Perhaps you’ve heard his quote – I’ll paraphrase:
When people get greedy he gets fearful, when people get fearful, he gets greedy.
I was left with a certain level of confidence despite the current financial and housing crisis – Warren is investing – again, not alittle – but alot. He’s not waiting on the sidelines, he’s investing now. Our stock and housing markets are ripe with opportunity.
Granted we’re all not blessed with billions – but interestingly enough, those who do have the resources should be investing – not in the future – but now. There is and will continue to be turmoil, however, as Warren stated, it is best to be approximately right rather than precisely wrong.
My take and my advice to my investor clients as well as those who are holding out for “the deal of a lifetime”. I think we’re approximately there.
Could prices fall further? Yep, I think they might – but would you rather buy with an approximate risk or some further loss or miss the opportunity all together?
Perhaps this is the most simple example of exactly how the rich get rich. When the majority sit Read more