Times Like These, Ask Yourself: What Would Warren Do?

“Be fearful when others are greedy and greedy when others are fearful.” How’s that for a classic Buffett quote. Look- whether your like the guy or not, he’s a financial genius; so in times like these, who do I watch? None other than good ol’ Mr. Buffett himself.

There’s no question what Buffett is doing right now. If you’ve followed some of his latest moves, he’s taking an extremely aggressive approach to an injured economy. Just ask him! Recently, he was caught saying that he’s “been buying American stocks” with his personal money. Interesting… American stocks? Well wait a minute! Maybe Warren is just getting so old, he can’t manage to make it over to the remote to turn on the TV to see what’s happening right now to American stocks.

Or maybe he’s just a genius, and you and I should do what he does.

So what’s he doing right now? Well, for starters, he picked up Berkshire Hathaway in the latter part of September. He also saw an opportunity with Constellation Energy and picked them up for $4.7 billion. Viewing Goldman Sachs as real steal, he picked up another $5 billion there; not to mention his $3 billion of preferred shares from GE, which is supposed to end up yielding somewhere in the neighborhood of 10%.

If the point isn’t clear enough, if you’re fortunate to have some spare funds lying around the house (right, as if anybody really has that!), go out and buy! There’s no time to wait! Well, according to Mr. Buffett there’s not time to waste.

I don’t necessarily think that he’s saying to go out and pick up stock from these particular companies, but the message should be clear- in a falling, injured US economy, rather than taking your losses and selling, why not hold on to what you have, and take any extra money and throw it in while stocks are on sale!

What are you doing? Waiting? Have you sold a lot of yours? Holding… ?

from financialnut.com