Saturday, October 18, 2008

Warren Buffett's Latest Essay on New York Times

Undoubtedly, Warren Buffet is the best practitioner in Value Investing by now. In his latest essay "Buy American. I am" dated 16th October, 2008 for The New York Times. He outlined the basic and most essential ideas of Value Investing. Below are some of the major points abstracted from his essay :

"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."

"Let me be clear on one point: I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month — or a year — from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over."

If you want to have a full idea of his essay, you may click the following links for full details :

http://www.nytimes.com/2008/10/17/opinion/17buffett.html?_r=2&ref=opinion&oref=slogin&oref=slogin

Take a look. You will be most benefited.

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