Warren Buffett says to buy American (bonds, credit, cash, 401k)

[paperhouse]

http://www.nytimes.com/2008/10/17/op...nt&oref=slogin

I think he may be on to something.

[NewJersey?]

Hmmm, who to believe?


Him or the D&Gers?

[Philip T]

Originally Posted by NewJersey?

Hmmm, who to believe?


Him or the D&Gers?

Both. Wealth should follow the path of wealth, and the peons should follow that path that will allow them to survive.

Problem is when they start screwing around in each others' domain.

Wealth was marketing to the slums and peons and got burnt -- that was what all the subprime mess was about.

Peons have been dinking around in the wealth domain (typical 401K activity) and getting burnt.

Classes exist because classes work. You cannot use your own rules and (limited) understanding in another domain.

[NewJersey?]

Well, I know lots of people who have become rich in the market, who were once "peons". Which class are they in?


Even Buffet, as famous and "smart" and "all knowing" as people say he is, said "I'm not necessarily calling this a bottom" but it is a good time to buy... because he knows no one knows where we will be.

BUT the D&Gers, being smarter than Buffet, say We 'WILL' be "in soup lines" We 'WILL' need guns.. etc...


"National Guard"... "riots"... lmao

13 minutes left. Enjoy it.

[Philip T]

Originally Posted by NewJersey?

Well, I know lots of people who have become rich in the market, who were once "peons". Which class are they in?


Even Buffet, as famous and "smart" and "all knowing" as people say he is, said "I'm not necessarily calling this a bottom" but it is a good time to buy... because he knows no one knows where we will be.

BUT the D&Gers, being smarter than Buffet, say We 'WILL' be "in soup lines" We 'WILL' need guns.. etc...


"National Guard"... "riots"... lmao

13 minutes left. Enjoy it.

Don't understand the simple concept of class?

The more PC term is Socio-Economic-Status.

It is not about money, alone. Looking more widely at it, money may be more just another symptom than cause. Else every lotto winner would suddenly be able to discuss when and how to short, and the advantages and downfalls of tax-free bonds.

There is a whole thinking and behavior process involved.

Some background >>>

Amazon.com: Framework for Understanding Poverty: Ruby K. Payne: Books

[ViewFromThePeak]

Originally Posted by NewJersey?

Well, I know lots of people who have become rich in the market, who were once "peons". Which class are they in?

Everyone on the internets claims to know "lots of people" who did this or own that.

Even Buffet, as famous and "smart" and "all knowing" as people say he is, said "I'm not necessarily calling this a bottom" but it is a good time to buy... because he knows no one knows where we will be.

BUT the D&Gers, being smarter than Buffet, say We 'WILL' be "in soup lines" We 'WILL' need guns.. etc...


"National Guard"... "riots"... lmao

13 minutes left. Enjoy it.

Many billionaires lost their entire fortune practically overnight. That being said, I'm sure Buffett isn't buying Circuit City or clothing retailers . Also, he gets preferred shares on financials. Neither you nor your imaginary friends will get the same deal.

[NewJersey?]

Originally Posted by ViewFromThePeak

Everyone on the internets claims to know "lots of people" who did this or own that.



Many billionaires lost their entire fortune practically overnight. That being said, I'm sure Buffett isn't buying Circuit City or clothing retailers . Also, he gets preferred shares on financials. Neither you nor your imaginary friends will get the same deal.

So, now I'm a liar? lol Nice.

People made fortunes, people lost fortunes. Yes, we know that, but people don't just make money by buying preferred stock or whatever Buffet is doing.

I guess that's what you get for "arguing over the internet". I hope you get internet access in your cave for when "IT" hits.

Bump all these threads up in a few years and we'll see if riots have broken out or people are killing each other for food etc..

[Woof Woof Woof!]

Originally Posted by paperhouse

http://www.nytimes.com/2008/10/17/op...nt&oref=slogin

I think he may be on to something.

I'm sorry, but I would not listen to Warren Buffet. He went in and supported this bailout and has some stake in one of the banks. He's interested in encouraging people to buy stock, that's all.

[chuck22b]

What I found was interesting is that he doesn't believe in holding dollars:

"Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts."

So, in essence, he is poised for an equity boost when the dollar depreciates - inflation.

Well, in the most part I think his investing advice have been pretty sound and nothing really out of the ordinary (buy low, sell high... buy when people are fearful... buy things you understand... etc. etc.). If you were to follow his moves for 30 years... you'd be a pretty wealthy person. So, I wouldn't totally discredit what he says. But, like everything, take it with a grain of salt.

-chuck22b

[NewJersey?]

Originally Posted by chuck22b

What I found was interesting is that he doesn't believe in holding dollars:

"Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts."

So, in essence, he is poised for an equity boost when the dollar depreciates - inflation.


-chuck22b

I think what he meant was people holding "cash" as in not being invested/money markets/afraid to leave it in the market, etc... are feeling comfortable because they can sleep at night, but will not reap rewards.

I don't think he was making an actual statement about the US currency itself.