Warren Buffet’s Pronouncements – A wise way to make your investment decisions?

10/17/08 – Warren Buffett Says Now Is the Right Time to Buy U.S. Equities (DOW Close 8,577 – The DOW has dropped 25% since that pronouncement) – http://www.bloomberg.com/apps/news?pid=20601087&sid=a_p0g99V7HUg&refer=home
 
03/02/09 – Buffet says both “economy in shambles” and “best days ahead”  
 
03/09/09 – Buffet says, “economy has fallen off a cliff”, “people have really changed their habits like I haven’t seen” and  “the current situation is like an economic pearl harbor”. http://rawstory.com/news/2008/Buffett_Economy_has_fallen_off_cliff_0309.html
 
Now one of the Fox commentators, trying to manipulate a rise in stock prices says, “Warren Buffet said, “America’s best days are ahead”” …..
 
Buffet’s full quote was , “America’s best days are ahead, but how fast we will go there is in question”. Asked about the lackluster economic recovery and plunging inflation, he said “it will depend on the wisdom of government’s politics.”  “I’ve never seen Americans more fearful,” he said. “It takes five minutes to become fearful, much more time to regain confidence. The system does not work without confidence,” he said. http://rawstory.com/news/2008/Buffett_Economy_has_fallen_off_cliff_0309.html

To Buffet’s great credit he also said he “did some dumb things in investments” in 2008 while taking responsibility for his company’s worst performance since he took over 44 years ago.

“By year-end, investors of all stripes were bloodied and confused, much as if they were small birds that had strayed into a badminton game,” he said.

Berkshire’s net worth nosedived, falling by $11.5 billion, according to its annual report, released March 1. Its shares have taken a beating in the past year. Since peaking at $151,000 a share in December 2007, it has fallen to $78,600, a decline of 48 percent. The S&P 500 has dropped 49 percent over the same period.                                                                                        http://www.dailyfinance.com/2009/02/28/buffett-admits-dumb-investing-mistakes-in-2008-berkshires-wo/

Closing note – the Obama Administration has already spent, or has committed to spend enough money to pay every family in America $78,000, enough to buy every family 1 share in Berkshire. Personally, I’d rather have the cash. 


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