Be Fearful When Others Are Greedy, And Be Greedy When Others Are Fearful

by prash on 17 Oct 2008

When the Oracle Of Omaha speaks, the world takes notice and his OpEd piece in the New York Times is possibly a voice of sanity in this time of greed and fear.

Warren Buffett is diving headlong into U.S. equities with a strong warning to cash-hoarders:

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. [New York Times]

“Buy American”, he says. “I am”.

Well that’s good to hear, but the question is “Do I (and you) dare?”

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