Warren Buffet sees opportunity in the new stock market bargains

October 17, 2008 by Marcel

“A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.” Warren Buffet

If your looking for bargains, now is a good time to snatch them… I don’t think I need to say anything else.

20 Comments

Ruben said

am October 17 2008 @ 12:58 pm

I guess time will tell. The problem is: what time frame is he talking about? Maybe stocks are going to be higher in 10-15 years? But are they higher in 2-3? I think not.
Marcel said

am October 17 2008 @ 1:01 pm

@Ruben

yep

He said 5, 10 – 20 years from now the investments will pay off BIG.
stocks said

am October 18 2008 @ 9:01 pm

Warren Buffet is one of the few people I would listen to and watch what to do in the investing market. After all, its very simple, if you want what he has, do what he does. And maybe someday you too will be able to give billions away to charity…
I’m glad someone posted about what he said, very useful words.
george said

am October 18 2008 @ 10:55 pm

Good point, 10-15 year wait needed. In the long run, his mantra of buying when others are fearful has served him well!
Curious Cat Investment Blog said

am October 19 2008 @ 7:59 am

He is definitely worth listening to. He did say “I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month — or a year — from now.” Investing is not about speculating on what happens in the short term. I have bought Google and Toyota recently plan on holding them for a long time. What happens in the next year doesn’t concern me (other than if they fall I may well buy more).
Accredited Degrees said

am October 21 2008 @ 12:03 pm

I am really tempted to buy some stock right now. It wouldn’t be much and it would be my first. So I have to study and look at trends and compare. We will see how it works out.
stocks said

am October 21 2008 @ 8:54 pm

@accredited degrees

Read, read read, as much as possible, subscribe to the rss feed available up top, and read some more, heeh
John - WebsiteBuildingBiz said

am October 23 2008 @ 3:12 am

The best bet is to always buy in at regular amounts and regular intervals. Set a monthly target and distribute purchases over a period of time to get the best average costs.

As far as timing speculation goes, I wouldn’t necessarily listen to Buffet here. He got pretty generous deals for his recent investments, and those kinds of dividends and option prices aren’t available to anyone else.

My advice is basically: Just don’t go all-in yet, if you’re lucky enough to have some capital lying around split it up and put a percent in following each big drop in prices. Buy all the way down…just don’t freak out and sell when it gets to the bottom and you think you’ve lost nominal value. Have to agree with Cramer’s advice posted a few posts up too, don’t invest money you need to use over the next few years.
Roger Hamilton said

am October 25 2008 @ 8:05 am

This is an informative post. Thanks for the useful information. Hope to see your new posts soon.
Maria Etiketten said

am October 25 2008 @ 12:08 pm

I have always been a big fan of buffet. I read some books about his investment strategies.
I want to invest some money in the near future, but i dont know if it is too early. I dont want to loose 20-30% now, even if i think that they will be earned easily in the years to come. “Never catch a falling knive” is still lingering in my head. I think i will wait another month.
stocks said

am October 25 2008 @ 6:40 pm

@Maria Etiketten
With the way the markets are, being down and all, I’d say that now is a good time to start, yeah, they’ll drop more, but I think the big loss is done for, now it’s just nerves..
Tanner (makes business cards) said

am October 28 2008 @ 2:33 pm

I agree with stocks, it’s not like you can loose much more?
bank accounts said

am November 2 2008 @ 2:33 pm

Seems there is reason to beleive earnings will improve in the next 2 years or so due to some not so good contracts being converted into better ones.

Also it seems that book value is somewhat misleading. Some 2B in tax liabilities that drag down the balance will not need to be paid if it stays in the railroad business.
Myron Tay said

am November 3 2008 @ 9:53 pm

When companies start liquidating, I say its time to start buying used aeron chairs.
Martin said

am November 4 2008 @ 5:56 am

There are too many facts and figures which indicate that a rosy future is waiting for us. And I am sure Warren Bufffet sees oppurtunity. But isn’t it possible that they are just trying to save the running away investers.

Even then, the post is showing a ray of light…
Horny Goat Weed said

am November 5 2008 @ 10:28 am

Yeah, like stock says, now there’s not much left to loose. So why fear go ahead and seize the time.
Babies R Us Coupons said

am November 7 2008 @ 10:09 pm

But it would be advisable to save what you are left with.
John @ Curious Cat Investing Blog said

am November 23 2008 @ 10:41 am

Buffett is right. The hardest part I think is not buying when things are pricey. He has lots of cash available to invest, if you were fully invested already it is hard to take advantage of this. As to what happens in the short term 1-2 years, I am not sure. The economy is certain to have problems at least for 2009. But when the stock market bottoms is very hard to pick.
Learn to Trade said

am December 19 2008 @ 11:06 am

I have to disagree with Market Trading above. People tend to do the exact opposite of what they should be doing in the market. Other people have pointed out that it depends on the time frame. I agree with them. Of all people I should know short run time frames.

In the long run I’m sure Warren will be fine. It’s hard to be wrong when you’ve only bought the best of the best. Goldman and Google aren’t going anywhere soon.
David Schirmer said

am January 11 2009 @ 3:27 pm

I don’t think people are fearful enough just yet. Besides, long-term market cycles suggest we havn’t hit our bottom just yet. We’ll see…