A good time to invest in stocks today?

@cicerone imposter,

Warren Buffett said it's a very good time to buy into equities. He said that when fear takes over the market, and people follow that fear into selling their stocks, there's no better time to buy. Buffett said he's spending his own money to buy equities now. Companies run with good management will always survive these dips; they always have enough cash to outlive the bad times of our economy.

1 Reply

@cicerone imposter,

Warren Buffet gets a huge extra serving for his money because during these times everyone wants to have WB's "seal of approval" The rest of us are not Warren Buffet, we can't get the deals he gets. He did say that generally when everyone else is running in fear the chances are that it is a good time to buy, but we are looking down the throat of a reordering of the global economy like we have not seen since the end of WW1, the stock market history that Buffet knows may or may not be a good guide for these times.

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@hawkeye10,

Buffet said he was using personal money to buy stock on the open market.

That is different from Berkshire buying part of Morgan? where they negotiated the deal.

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@hawkeye10,

I trust Warren Buffett more than most financial analysts or "experts" in our government like Paulson, Greenspan, and Bernanke.

I also believe it's a good time to buy, and repurchased funds I sold when the DOW was at 14,0000. I repurchased the same funds at a 40% discount.

I still have 50% of my money left to purchase more in the event the market decides to tank further.

I'm not selling, and I'm in the market to buy.

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@parados,

Quote:

Since stocks began to tumble in September, Buffett and his investment company, Berkshire Hathaway Inc., have made large bets on U.S. companies, exacting rich dividend payments in the process.

Berkshire Hathaway agreed on Oct. 1 to invest $3 billion in General Electric Co.’s preferred shares, which carry a hefty 10 percent dividend. In late September, Berkshire Hathaway also bought $5 billion in preferred shares of Goldman Sachs Group Inc., which also pay a 10 percent dividend. He bought warrants to purchase another $5 billion in common shares at about $115 each.

In the New York Times article, Buffett stressed he was discussing his personal investments outside of his Berkshire Hathaway holdings, which are pledged to charity. In 2006 Buffett pledged most of his fortune to the Bill and Melinda Gates Foundation and four Buffett family foundations.

http://www.msnbc.msn.com/id/27235731/

do you have any proof that Buffet is buying is personal equities on the open market?

1 Reply

@hawkeye10,

hawkeye, Here's the article I read:http://www.mercurynews.com/opinion/ci_10755833

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@cicerone imposter,

I am reading stuff like the following, so when someone claims that Buffet is buying on the open market I ask "How do you know?"

Quote:

But those same investors should be careful. It's not that Buffett isn't smart, he is. But at this stage of the game, Warren Buffett doesn't buy stocks on the open market by calling his broker, he buys them in bulk.
For instance, he didn't just go out and buy battered shares of General Electric Co. on the open market Oct. 1. He also received $3 billion in special, preferred stock. Those shares will pay a 10% dividend for at least three years and if, after that, GE wants to buy it back they will have to pay him 10%. Buffett also got warrants to buy GE stock that at the time was worth a 13% discount to existing shares.
The same principle applied with his investment in Goldman Sachs Group Inc. just a week earlier. Buffett again bought $5 billion in preferred stock. He'll get the same 10% dividend and $5 billion in warrants at $115.
The problem for Buffett is that his warrants were becoming worthless as GE and Goldman stock fell. One cheap, easy way for Buffett to reverse his losses is by penning an editorial using his huge sway, folksy style, and hints of patriotism to stir up some buying.
Buffett made the point that he's using his personal account to buy stocks. That may be true and his heart may be in the right place, but it's also true that Buffett's fame, success and fortune ride with his investment company Berkshire Hathaway not his personal account.
Investors should, in the end, be mindful of Buffett's advice, "Be fearful when others are greedy, and be greedy when others are fearful."
And when the "others" are investors driving very greedy sweetheart deals?
Wait until you can get your own.

http://www.marketwatch.com/news/story/if-warren-buffett-feeling-greedy/story.aspx?guid=21A63C14-15FC-4C05-8D5C-ED202E2B44C3&dist=SecMostMailed

1 Reply

@hawkeye10,

I understand; but in the San Jose Mercury article, it plainly says he's buying stocks from his personal funds. Those purchase of GE and other finance companies were already in the news as actions for Berkshire Hathaway.

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A good time to invest in stocks today?

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