Warren Buffett, the “Oracle of Omaha” and head of Berkshire Hathaway Inc, wrote in the New York Times, “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.”
The stock market is ruled by two emotions, Fear and Greed. Warren Buffet adds his bit of wisdom to that notion. He writes, “Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors.” So in essence, he calls for a major investment into U.S. Stocks for long-term gains and added several U.S. companies to his personal portfolio.
Buffett appears to be maintaining his bullish view of railroads, a view that he has held since early 2007 when he first disclosed investments in the sector. In the short- to intermediate-term, there’s still the issue of reviving the banking sector, and key bank CEOs like JPMorgan’s Jamie Dimon have expressed little optimism for the Treasury’s program of capital injection, but Buffet seems unconcerned about such short-term ideas.
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