warren buffet

Just buy something.

Warren Buffett speaking to a group of students...
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If you have some cash lying around, why not buy something in this market.

Prices are cheap, and while they may get cheaper, you can get a good deal on most companies listed on the market. If you are looking to get rich quick, then stay on the sidelines. But if you are looking to pick up some equity in your favorite companies and hold on to those shares for a few years, now is the time.

Consider the following when doing so:

  • Pay no attention to macroeconomic trends. You cannot possibly predict the future.
  • Stick to your “circle of competence”. Buy companies that you understand.
  • Try looking for managers that treat their shareholders money as if it were their own. Mangers that might have bought back their company stock in this environment. People interested in creating value.
  • Study prospects and competitors of a potential investment. Who else is in that space?
  • When you are convinced that a company is a good company and meets this criteria, why not buy it?

Believe it or not, these are some of the basic and core principals Warren Buffet lives by. Although it’s unlikely that you will ever come close to his skill at dissecting businesses, prices are cheap enough that you can get away with finding a good deal.

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Free Market Economy

Not in one anymore.

Consider this: This is the first time in my lifetime, as well as the lifetimes of everyone in my generation, that we are experiencing something very, very BIG (financially)…or as Warren Buffet put it…

“We are facing financial Pearl Harbor”

The real effects or magnitude of this situation are still incomprehensible to me.

Once this bailout officially goes through, which it will, the financial industry will never be the same. The private sector will never truly be private (at least not for a while), and a socialist economy will begin to take shape. 

Individuals with real ingenuity and innovation in the financial markets, along with strong ethical and moral values will spark new oppurtunities and blaze a path that will hopefully bring us back to that free market.

These heroes will most likely come from my generation, and hopefully, they will not succumb to exploitation tactics in search of quick riches. 

I hope those heroes come sooner, and I hope those heroes make their way to leadership positions within our government.

I was curious to see what the markets looked like from the year I was born (1985) until today. Below is a snapshot that displays General Motors, S&P 500, Nasdaq, and the Dow Jones Industrial Average from 1999-present day.

No analysis here. Too busy contemplating the future.

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