His main points...
So ... I’ve been buying American stocks. This is my personal account I’m talking about...If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities.
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.
This is one key question every investor must always ask him/herself...Am I using a stopwatch or a calendar to measure my performance? Apparently Buffett and I use a calendar, that's why I am buying stocks like APWR, JRCC, GAF and MOS down at these levels even after taking egregious losses.
More quotes...
A little history here: During the Depression, the Dow hit its low, 41, on July 8, 1932. Economic conditions, though, kept deteriorating until Franklin D. Roosevelt took office in March 1933. By that time, the market had already advanced 30 percent. Or think back to the early days of World War II, when things were going badly for the United States in Europe and the Pacific. The market hit bottom in April 1942, well before Allied fortunes turned. Again, in the early 1980s, the time to buy stocks was when inflation raged and the economy was in the tank. In short, bad news is an investor’s best friend. It lets you buy a slice of America’s future at a marked-down price.
Equities will almost certainly outperform cash over the next decade, probably by a substantial degree.
I’ll follow the lead of a restaurant that opened in an empty bank building and then advertised: “Put your mouth where your money was.” Today my money and my mouth both say equities.
No comments:
Post a Comment