Tuesday, May 19, 2009

Warren Buffet gets bullish

By Dan Danford

Warren Buffet hit the news this week when his first quarter buys of stock in banks Wells Fargo and US Bancorp. Buffet also changed his position on the S&P Index to take a more bullish stance. His new position means that the market will have to increase 15 percent over the next 10 years.

It's hard to bet against the Oracle, and it's equally hard to bet against the long-term market trend. What Buffett says about the stock market is almost "common sensical." He's a guy of remarkable success, partly because he focuses on long-term investing rather than short-term swings in the market. Individual stock choices are long-term and he suggests index funds for "most" investors. This is a long-term play on the stock market's rise from here. How is that different from other things he says and does? It isn't. He's a remarkably consistent person, and it works.

Read more about Buffet's changing position here:

Betting on America Buffett Doubles Down on Derivatives Ups Stakes in Wells US Bancorp: Tech Ticker, Yahoo! Finance
http://tinyurl.com/qa7bjv

No comments:

Post a Comment