George Pinto wrote:
> If the Oracle of Omaha, one of the richest persons in the world and
>considered a
> top investor can't get it right, where does it leave mere mortals. Imagine
> the REAL
> money people lost taking his advice. Or will he hide like others behind the
> fine print
> "past performance is not indication of the future" or similar caveats.
George,
Warren Buffet was on CNBC for about an hour this morning.
He had some some sober thoughts to share and the impression I got was that the
man
knew what he was talking about. If I understood him correctly, he insisted that
no one
anticipated the ferocity and quickness of this stock market crash. He also said
that the
companies he invests in are those which are going to be around and making a lot
of
money, long after he is gone. He is, after all, the worlds most successful
investor.
One reporter asked him if he invests in gold. Buffet replied, "I don't
understand the concept
of taking it out of the ground in South Africa, bringing to the USA and storing
it underground,
paying storage and insurance fees, and somehow making a profit from doing this."
Buffet's style is not short term profits. His style is the opposite. He has
certain needs, he has
certain goals, he has a proven plan and he adheres to it. This morning
Buffet said that he
expects that the US economy will be in recession for five years. Five years!
Anyone close to,
or in retirement will be feeling the pain AND remembering the right wing
"self-regulation" theory
that got them into the mess.
> This is why I have written it is better to admit one does not have a clue
> about the economic
> meltdown and what might happen in the future.
The cause of the economic melt down is not clueless. The cause is well known.
People were
given loans in California that they could not have qualified for. ALL the
authorities turned a
blind eye when this was happening. Now that the house of cards has collapsed,
the small
guy has to bear the pain of having little or no regulation.
As for what might happen in the future, the economic text books are full
of examples of what
happens when certain economic stimulus is introduced or removed. For example, I
am a
follower of the belief that whenever a country prints more and more money, the
value of that
money goes down. I am willing to bet that because of the amount of money the US
is printing,
it will soon experience inflation.
People do have a clue of what to expect in the future. In fact, the fiscal
policy of any country is
geared towards producing a desired effect in the future.
Mervyn1650Lobo
Quote of the day (from a trader):
“This is worse than a divorce. I’ve lost half my net worth and I still have a
wife.”
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