Warren Buffet leading the way for your Greed, Don’t follow your greed!
October 18, 2008 : Posted by: Roman : Category: Business, Entertainment : Add Comment
Warren Buffet
This week Mr. Warren Buffet declared that he will be investing heavily into American stocks. Some on you may have taken this as a sign that the market is going up and things will be better soon. Well sorry to say but this means something but not as much as you think. Warren Buffet invests into things that he has faith in and for the LONG term. The positions that he bought or will be buying into will be kept for at least 5 years. Plus, He (or someone who works for him) did a great deal of research on the company’s that he will be investing into. Do not invest blindly into something thinking that everything will rise again and soon.
If you are investing for the long term then this is the best time. It may not be the bottom but you are still buying a large array of great company’s for discounted prices! The old saying buy low sell high still applies to the market. But to follow Buffet game plan, you as a investor still have to do research and realize that this is going to be a LONG LONG game.
By the way I don’t think that buffet will be dying anytime soon. He will outlive us all just watch and see.
October 20th, 2008 at 5:17 am
First kudos on Buffet who will donate most of his fortune to charity (most of it to the Bill & Melinda Gates Foundation). As for investing advice, you have to understand that the terms he’s getting is quiet different than a typical investor.
EXAMPLE OF HIS INVESTMENT:
“$5 billion of perpetual ***PREFERRED*** stock with a 10 percent dividend. Berkshire also gets warrants to buy $5 billion of common stock at $115 a share at any time in the next five years. The common stock closed yesterday at $125.05, providing Buffett with an instant paper profit of $437 million. ”
With anyone that understands basic corporate finance, understands that he basically has no financial risk vs an avg investor who decides to buy $5,000 worth of COMMON STOCK. Oh and a 10% annual dividend - that also sounds pretty sweet
He will obviously come out on top with his Goldman and GE investment (especially in the long run).