Warren Buffett Steps Up and Buys Stocks In His Personal Account

This probably won’t get any attention on Friday so I will run it...senior citizens are buying equities hand over fist, some for the first time in years:

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.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities.

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

Buy when you are the most uncomfortable...that is the best advice you will ever get. And Warren even has a disclaimer…

Let me be clear on one point: I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month — or a year — from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either.

Yes, he was a bit early committing capital in the 1970’s, but that eventually worked out alright for him....although he seems to be on the opposite side of the trade from Jim Cramer.

Hmmm…

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Buy American. I Am.
Warren Buffett
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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author.

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