what does warren buffet have that we don't?
October 19th 2008 22:44
By now you will probably have all seen the article in the New York Times from the weekend CLICK HERE IF YOU HAVEN'T where Warren Buffet says its time to buy US Equities so via default he is recommending to buy stocks globally. Ths will no doubt be another historical Warren Buffet moment of which there are many.
Given recent market performance what can he see that we don't. Welll the answer is simple, Warren Buffet is a value investor. This means he evaluates and buys companies on valuation, not on market sentiment. A large part of the recent fall in equities has been for want of a better phrase, throwing the baby out with the bathwater.
The finance world has known there has been an economic slowdown coming for a long time now, markets are now reacting because the man in the street has worked it out, Warren Buffet being a professional investor can now draw the line in the sand and say, in quality, well managed companies the recession has been well and truly been priced in, so it is time to invest n the companies that will be well placed when things pick p again because when things are good again you won't be able to buy them at current prices.
Another way of putting is this, Warren Buffet thinks long term, equity markets are currently reacting to short term news headlines creating opportunity for those who think ahead.
I wrote a post a week or so ago saying it was time for rationality to come back into the market and listed my top picks. This shake up should have helped us all to wake up to ourselves that our excessive financial system not only damages the environment but damages all of us. Capital is a powerful tool to leverage corporate behavour, if you invest your money in companies that also help the environment then that is one of the most efficient ways to actually help the cause.
Here is a link to my list of Green Investents from around the world CLICK HERE. Warren Buffet bought into BYD Corp (1211 HK)
cheers
Louie
Given recent market performance what can he see that we don't. Welll the answer is simple, Warren Buffet is a value investor. This means he evaluates and buys companies on valuation, not on market sentiment. A large part of the recent fall in equities has been for want of a better phrase, throwing the baby out with the bathwater.
The finance world has known there has been an economic slowdown coming for a long time now, markets are now reacting because the man in the street has worked it out, Warren Buffet being a professional investor can now draw the line in the sand and say, in quality, well managed companies the recession has been well and truly been priced in, so it is time to invest n the companies that will be well placed when things pick p again because when things are good again you won't be able to buy them at current prices.
Another way of putting is this, Warren Buffet thinks long term, equity markets are currently reacting to short term news headlines creating opportunity for those who think ahead.
I wrote a post a week or so ago saying it was time for rationality to come back into the market and listed my top picks. This shake up should have helped us all to wake up to ourselves that our excessive financial system not only damages the environment but damages all of us. Capital is a powerful tool to leverage corporate behavour, if you invest your money in companies that also help the environment then that is one of the most efficient ways to actually help the cause.
Here is a link to my list of Green Investents from around the world CLICK HERE. Warren Buffet bought into BYD Corp (1211 HK)
cheers
Louie
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