Friday, October 17, 2008

Good Advice

There is something wonderfully down-to-earth about billionaire Warren Buffet that makes it hard to dislike him. He's now offering some good advice to everyone...

Buy American. I Am.


THE financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary.

So ... I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities.

The only problem: most normal Americans have no money to "invest". In fact even the rich aren't doing that well right now and have little free cash lying around to be invested. So this wonderful opportunity will be left for Warren Buffet and the ghouls of the hedge fund trade to pick up the carrion and feast off it.

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