Oct 17 2008
Be Greedy When Others Are Fearful
Warren Buffett channels my post from exactly one month ago in his New York Times opinion piece today. To put it simply, Buffett says that now is the time to buy American stock, to invest in the market. He goes on to explain his rationale in his usual concise and clear language:
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.
So follow the Oracle of Omaha‘s lead, and keep investing, especially now. Lisa and I haven’t slowed down, we are taking advantage of this unique situation as much as we possibly can.
