The economy is in crisis, unemployment is on the rise, and there is a general feeling of fear in the market. Where some see despair, Warren Buffett sees opportunity.
In a recent Op-Piece in the New York Times, Mr. Buffett explains his reasons for investing in US Equities and urges others to do the same. He encourages investors to “be fearful when others are greedy, and be greedy when others are fearful.” Warren may be speaking from the perspective of a patriot, but he is also a pretty darn savvy investor, consistently ranking among the richest people in the world. He acknowledges that “people have a 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.”
If Warren’s betting on the US Economy, deal me in.
Check out the rest of the article, on top of being an incredible investor, he is also a witty writer. It is well worth the read.
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