Warren Buffett, Cash, Stocks, and Award-Winning Book Invest Now
Warren Buffett, the world’s greatest investor, richest man, and dedicated philanthropist, wrote an op-ed post in The New York Times on Oct 16. In this post, Buffett stated that he is getting rid of cash (lots of it) and buying stocks. Buffett’s decision to trash cash and buy stocks amid an ongoing financial crisis has created heavy buzz and it is expected to bring some confidence back in this time of market turmoil. I find Buffett’s article somewhat interesting because what he mentioned in it resembles with what I said in my book, Invest Now. Let me point it out to you by doing a comparison.
|What Warren Buffett Said||What I Said In Invest Now||Page No.|
|“Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value.”||“Stay away from savings accounts. Even if you hold one of those high interest–paying savings accounts, you will not beat inflation in the long run.”||Page 9|
|“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.”||“Let me give you an eternal stock-market tip that will remain true forever. No one can predict the market. Not I, not you, not any analysts, not Warren Buffett. Simply no one can or ever will.”||Page 83|
|“What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.”||“No one can predict the market, which will always have ups and downs. Focus on your long-term goals. Start investing, keep adding money, and stay invested. If you start early, you will have time on your side; even a smaller amount will turn into a large amount in the long run.”||Page 117|
Invest Now is jam-packed with timeless material which is true today, and will remain true forever. In Invest Now, I emphasized staying invested for the long run and asked you not to panic in market turmoil such as what’s happening globally right now. Start investing, focus on your long term goals, and you will survive global financial meltdown.