Be like Warren

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If there is someone out there who has made more money by investing in stocks than Warren Buffet, then perhaps you should listen to them when it comes to how you should be viewing the current opportunities in the stock market. However, if you’re making investment decisions based on screaming idiots on CNBC or some whacked out survivalist who seems to crave the future vision he’s peddling — one where we’re living in caves filled with MREs and defending ourselves with automatic weapons, then I suggest you take time to consider the clear-headed (as always) reflections of the Oracle of Omaha.

Read this entire New York Times opinion piece written by Warren Buffett. And yes, he wrote it himself, as anyone who reads his annual letters to Berkshire Hathaway shareholders will recognize.

I could have pulled almost any sentence as a quote, but here’s an especially good one:

“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.

  • Great line (any my favorite) from Warren’s piece:

    >>>In waiting for the comfort of good news, they are ignoring Wayne Gretzky’s advice: “I skate to where the puck is going to be, not to where it has been.”

    So true. So true. All the great strategists + bleeding edge innovators seem to take this advice to heart. Great post.