Friday, October 17, 2008

Warren Buffet Quote

I read an Op-Ed piece by Warren Buffet, one of the richest men in the world, from today's New York Times. There is a quote from him that is very appropriate for the current turbulent and volatile stock market.

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

I'd say that right now a lot of people are fearful so it's time to get greedy. Historically, the stock market goes up over long periods of time. In fact, there has never been a ten year period of time when the stock market is down! So if you are a long term investor (as most should be) Warren is telling us that now is a buying opportunity. That is exactly what he is doing and so am I.

My recommendation is to look for well managed, high quality companies with excellent prospects for the future where price has been beaten down. Buy them now if you have 5 to 10 years as an investing horizon.

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