Sunday, August 28, 2011

End of Warren Buffet ?

Have you ever had the experience that before you invest in something, you always get the market right ?  Then once you get into in, things start going the other way and you wonder Argh !!! Its just so typical ?  Well, you are not alone.  Almost everyone has that, even the most experience investor.  But would Warren Buffet fall for such prey too ?

There is such thing called 10 years cycle in global stock market where the worst and best performance take turns every 10 years, there about.  Previous recessions happened in 1990, 1998, 2008.  So theoretically for the next few years, we are heading toward the next height better than ever before.

Warren Buffet shared the same thought and he has been heavily invested into the market since 2009.  By early 2011 he is almost fully into the market.  But everyone can see now that the market is NOT shooting up yet.  On the contrary, most are expecting double dips now especially for the western worlds.

It appears that even Warren Buffet starts to get worry and he now appears more on media stating his opinion that there is nothing to worry about.

We (USA) have a great system (finance), 
we always get back on our feet
it doesn't mean we wouldn't get tested
but we will be fine.

This is called public confidence instilment.  Since he doesn't have others things to do; ie. most of his capital are already in the market, he, the ultimate investment idol of the world, now has the time to come out asking all of us to join him to go into the market.  Unfortunately, this time ... even the market is bigger than Warren Buffet, may be ?

There is no apparent hints which way market will go but then again, things should become much clearer before year end so its not too long from now.  Warren Buffet will either meet his end or he will become so much richer than he already is.

So right now, Warren Buffet is hopeful on the market because he is already in the market and he needed it to be ok.  So don't beat yourself too hard when the market didn't go your way after you go in.  Its just part of our nature way of expecting the world to go our ways, always.

kass had the same worry too


LCF said...

:D He's will be 81 years old in 2 days time, ....81! Got nothing to lose in a sense, so could probably "sai lang" most of investment? Either way, the events which will unfold soon could be his legacy

Michael Tsen said...

personally I am on his side not because of a fan but I am in the market too :p I only have one or two more in flow and that's it, I am done too !

Warren Buffet actually has a very good successor plan in place, the way Berkshire Hathaway invest will continue even if he moves on one day.

He didn't really 'sai lang' in the sense that he is investing the same way he has been all these while. But it would still be interesting to see how this global economy shift from West to East would affect his investology.