In an New York Times editorial on Friday, Warren Buffet tells us: Buy American, I am. Mr. Buffet was talking about his personal account which previously held only U.S. Government Bonds. Now he is putting his money into American stocks.
Why is he doing it? He lives by this rule: Be fearful when others are greedy and be greedy when others are fearful. "Fear is now so widespread, gripping even seasoned investors, but fears regarding the long-term prosperity of the nation's many sound company's make no sense", says this financial guru.
He goes on to state "I can't predict the short-term movements of the stock market, but it is likely that the market will move higher, perhaps substantially and if you wait for the robins, spring will be over".
I have to listen when this man talks. He believes cash equivalents aren't where our money should be. Over the next decade equities will almost certainly outperform cash. Those investors who are waiting for good news are ignoring Wayne Gretzky's advice: "I skate to where the puck is going to be, not to where it has been".
To read Buffet's editorial in full click here.