Why Buffet Can Buy

Warren Buffet had a piece in the New York Times this morning saying he is buying American stocks.  I do agree with the principle of buying fear or when there is blood in the streets.  That is now.  However, there’s a couple of things to consider.  First, he has the staying power (despite his age) to buy it and hold it because if it goes down another 50%, so what.  What’s a few billion, right?  If you lose another 50%, it could affect your retirement, your kids may not get to go to college, etc.  Also, when he speaks people listen.  So, he can say he’s buying and many will follow suit and buy.  It’s sort of a self-fulfilling prophecy.  That’s a little different than if I were to say it or you were to say it.  The concept makes sense and he’s probably right but that’s not our green light to buy stocks.  We need a little more proof from the market that it can follow through for a few days.

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1 Response to “Why Buffet Can Buy”


  1. 1 lev October 18, 2008 at 9:11 pm

    Yeah, if I could get the same deals that Buffet gets, I would buy a lot now too.


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