Buffett buys in
 

Warren Buffett is considered one of the canniest investors in the world.

His rule is: never lose money.

He recently invested $5 billion in Goldman Sachs.

He has just invested $3 billion in General Electric.

Either the old feller has lost the plot (which I very much doubt), or this is a big vote of confidence in the system as a whole.

Even if he is just "bargain hunting", those stocks are only bargains if things are going to get better. Makes me feel a bit better.

Maybe he wants it to appear as a vote of confidence in the system as a hole. :eyebrow:

Fairly safe picks that will allow him a profit later, if not sooner.

Remember, he's got the money to spare, and if he does happen to screw up, he can afford to lose that measly $8 billion. He won't be happy, but he won't be broke, either. :headshake

OK, seriously? There are only two options. 1) History repeats - we go into recession but then come out and carry on as usual. 2) History doesn't repeat - we go into a death spiral and end up bartering for milk and eggs.

Buffett is a long term value investor. He buys distressed companies that have strong fundamentals, decent management, and a catalyst for future growth, then he holds them for a very long time. He is buying two companies that are well off their high water marks and because he buys in enormous blocks he gets extremely steep discounts off current pricing. This is classic bargain hunting.

He'll make a killing but you won't hear about that for years to come because he will hold onto the companies until he feels they're no longer a good value - most likely that will be after his death.

of course, the whole global market could collapse in which case his money is useless anyway.:right:

Cool, I've got milk and eggs. What do you have?

I'm enjoying the fear game they're playing now as if there are no economic consequences to protecting corrupt organizations from market forces.

I love buffets, especially the All You Can Eat variety.
Oh, wait.... Sorry.

I can bake my own bread over a campfire and I have a friend with two elk in his freezer, plus 3 live steers and a heifer, plus so many hunting rifles I can't count them all. If anyone would like to come out, I'll put your name up for discussion. ;)

That must be a huge freezer.

Speaking of freezers, and this thread on the economic crisis...

There was a story in the business section of today's paper about Wachovia's customers and how some of them are a bit nervous about their funds.
OK, Charlie Park, Williamsburg, VA. $1,200 cash in freezer. Works at PearBudget.

Should I Google him? Post a Street View picture of his house up here? Directions?

At least crack heads don't read newspapers.

Hmm, not the sharpest knife in the drawer. Guess the "reporter" wasn't either.

Buffett also bought Constellation Energy and recently took a 10% stake in a Chinese battery/electric vehicle company. So he's not just backing GS & GE (BTW he's already out of the $ with the latter.)

Are they ever really? :rolleyes: