Warren Buffett - The Worst is Over
Warren Buffett, who invested billions in a variety of deals as the stock market plummeted back in October 2008 and who recently made an all-in bet on the U.S. economy when he bought railroad Burlington Northern Santa Fe, said yesterday "The financial panic is behind us. The bottom has come in stocks. Don't pass on something that's attractive today." Let us hope he is right, but as the bottom was around 6800 on the DOW back in March there is no guarantee that the DOW will not fall back and get close to that bottom and Warren Buffett could still be right saying the bottom is in.
"Last fall was really blindsiding," Buffett said to students at Columbia university in New York, "still I did not worry about the overall survival of our economy."
The recession may be over, but job losses are still rising and employers shed a total of 190,000 jobs in October, the 22nd consecutive month of losses. The unemployment rate is now at 10.2%, a 26-year high.
Warren Buffett also praised the action staken by the Bush administration last September, when he said "only the government could have saved things" following the collapse of Lehman Brothers.
He added that in future "there should be more downside to the head of any institution that has to go to the federal government to be saved for reasons of the greater society. And so far, we have been better at carrots and sticks in rewarding CEOs at the top. But I think some more sticks are called for."
As for tips for the future Buffett told students to "marry the right person" and added, "The worst investment you can have is cash."
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