The economy is tanking, the market is down. While I do believe we're in some reasonably choppy waters right now, the stock market's volatility is driven by lots of stupid psychology that I don't even want to consider.
But here's what I want to propose to my readers. Have you liquidated some investments looking to preserve wealth? Have you put more into cash and other easily convertible assets? Have you reduced your equity holdings? Many of you will probably say yes, and I hope that's worked out for you. But here's what I propose. Buy. Buy now. Get back into the market, but get back in by buying dependable, growth oriented stocks. I am not an investment counselor, and I have no stock picks for you....but I damn sure know that there are LOTS AND LOTS of stocks out there that have taken a hit SIMPLY BECAUSE THE MARKETS ARE DOWN and not because of any real issues with the business. Talk to your broker (if you have one). Ask about companies like this. Companies with international presence, companies that actually PRODUCE SOMETHING, things the world wants and needs.
You want to be patriotic? Be a capitalist. Like Warren Buffett says....when others are greedy, be fearful. When others are fearful, be greedy.
Friday, October 17, 2008
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3 comments:
Buy General Motors. Unbelieveable that this company's stock is so low. Gobble it up. This is a truly global company, bullet-proof in the long-term. You think the gov't will let it fail? No chance, never.
Hmmm, there's a whiff of "let them eat cake" in urging the average Joe (Six-pack, the Plumber, whichever) to do this when much of the crisis goes back to these average Joes over-leveraging themselves to buy homes.
But I agree that it does make sense to do if you have the capital to risk safely, and I really wish I had Buffet's list in hand. And will he send another editorial letting us all know when he plans to sell, too?
Dan--don't do it. GM won't be with us in 365 days.
Ghost....not a lot of "average Joe's" reading this blog....
Everyone...on my honor as a gentleman and graduate of the University of Virginia, I did not know of, nor read, Buffett's column in the New York Times before posting this.
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