Warren Buffet, also known as the Oracle of Omaha, is one of the, if not the best, best investors in the world. He has been able to hold through many economic recessions, and is right now one of the world's richest men. With the economy in a recession, and stocks heading for all-time lows, Warren Buffet is starting to buy U.S. stocks again. Earlier, the only American investments he held were treasury bonds. Because stock prices are falling, Buffet has converted almost all of his portfolio to US stocks. He says, "Be fearful when others are greedy, and be greedy when others are fearful." He also states that the worst may not be over for the economy. Many investors, even the most-seasoned veterans, are cashing in their stocks, taking the hit and not risking much more money. However, bad news can also be good news. As Buffet says, "Bad news are an investor's best friend. It lets you buy a share of America's future at a marked-down price.
Even though this concerns the American economy, Canadians may also benefit. The Canadian economy, though severely hit, as not been hit as hard as the Americans had, and Canadians can better afford to buy a portion of the US economy. Even though people can't afford to invest into the stock market like Warren Buffet, they can still put some money into the stock market as it continues falling. Buffet is right- the best news for investors occur during stock falls. This allows investors to buy when stocks are close to worthless, and wait for the market to turn back up again.
http://money.cnn.com/2008/10/17/news/economy/buffett_op_ed/index.htm?postversion=2008101709
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