Google
 

Thursday, January 31, 2008

Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do we

Hi,
Mr. Warren Buffett Quote: "Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well."

During the bullish most people buy stocks to rid with the market, during bearish people will sell to cut loses. Mr. Buffett one of the best investor in the world had a different view with the crowd. Mr. Buffett is a value investor and one of the principles is that he would buy stocks only at a very attractive price.

Warren Buffett would only buy stocks that if he thinks it a bargain for Berkshire Hathaway shareholder, he always like thing to get cheap. With around 40 billion in hand Berkshire Hathaway can buy a lot of great company but Mr. Buffett would only buy them if he think the value of the share is much higher then the current stock price.

Stock Market seems to rally two day ago as the Fed would seem to cut interest rate. Yesterday, The Fed cut its fed funds rate to 3.5% from 4.25% and also its discount rate to 3.5% from 4%.

With great news the stock market seem to rally for Monday and Tuesday. The main thing here is should investor continue to buy stocks? Would investor overpay the stocks they are buying?

What is a bargain now? Is now the best time for value investing, buying stocks the Warren Buffett way? Come on give me your comments...

No comments: