Monday, October 20, 2008

Warren Buffett says buy stocks now

Warren Buffett, the world's greatest investor, has a message for people who have become fearful of today's stock market: Buy stocks now!
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.

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 sentiment or the economy turns up. So if you wait for the robins, spring will be over. ...

Over the long term, the stock market news will be good. ... Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset.... Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. ... Today my money and my mouth both say equities.


  1. go ahead warren--be greedy and buy those US financials on margin...

  2. What does Buffet own? Stocks. What does he want you to buy? Stocks. He ain't buying he's either selling or holding.

  3. Anonymous said...
    "go ahead warren--be greedy and buy those US financials on margin..."

    Buffett doesn't buy on margin.

    Rob Dawg said...
    "He ain't buying he's either selling or holding."

    Anyone who has read about Buffett's investing methods knows that this is the type of time when he likes to buy. Buffett likes to buy when stocks have fallen, and stocks have fallen a lot recently. Also, he rarely sells. His ideal holding period is forever.