Saturday, October 18, 2008

Warren Buffet Comment in Today's New York Times

Here are some of the highlights from Warren Buffett's Op-Ed in the New York Times yesterday.

Buffett: I'm buying stocks
Berkshire Hathaway CEO gives advice on how to invest during America's money crisis.

"In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary," Buffett wrote.

But for that reason, the Berkshire CEO said, he has converted his personal portfolio almost entirely to U.S. stocks. Previously, he said he owned nothing but Treasury bonds.

Buffett said the fear surrounding the disastrous credit crisis, which has dropped stocks about 36% from their all-time highs set around this time last year, has left equities with attractive purchasing prices.

"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful," said Buffett. "And most certainly, fear is now widespread, gripping even seasoned investors."

"Fears regarding the long-term prosperity of the nation's many sound companies make no sense," wrote Buffett. "Most major companies will be setting new profit records 5, 10 and 20 years from now."

"Bad news is an investor's best friend," Buffett said. "It lets you buy a slice of America's future at a marked-down price."

Some of Warren Buffett’s top stock holdings:
Coca-Cola Co (KO)
Wells Fargo & Company (WFC)
American Express Company (AXP)
Procter & Gamble Co. (PG)
Burlington Northern Santa Fe Corp. (BNI)
Johnson & Johnson (JNJ)
US Bancorp (USB)
ConocoPhillips (COP)
Bank of America Corporation (BAC)
General Electric Co. (GE)

Disclosure: The Div Guy owns shares of PG, JNJ, USB, BAC and GE at the time of this post.

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