Monday, October 27, 2008

Should we be buying stocks like Buffet says?

Warren Buffet had a widely read Op-Ed in the New York Times recently. Buffet thinks the time is ripe to buy. According to MSN's Bill Fleckenstein it is not:

Folks who think what happened in Japan can't happen here should think twice, because what happened in Japan can happen here -- in spades -- especially when one considers that the Japanese save and Japan runs a trade surplus. We do neither. Even though historically we've tended to clean up our problems a lot
faster, that is not our current policy; capitalism has been abandoned for socialism when it comes to financial matters.


Let's face it, there's a possibility that Buffet is speaking in his own self interest. When Buffet speaks people listen. If he can help talk up the market it goes directly to his bottom line.

3 comments:

  1. I hope he's speaking in his own interest. The road to hell is paved with tea-cosy heads acting in the best interests of others.

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  2. I agree. Certainly. But if all our holdings are in equities, your "advice" becomes a bit tainted, no?

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  3. I bought, but have not faired well. I hope he's right at some point.

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