Friday, October 17, 2008

Buy Bye

Warren Buffett's "Buy American. I am." is a thoughtful, well intended piece trumpeting the long term benefits of investing in the stock market now. The flaw with Mr. Buffett's theory is that it overlooks the essential predicate for his position being feasible.

The ugly truth is that most Americans don't feel that they have sufficient assets remaining to be able to 'park' monies in the market for the next 15 to 20 years before seeing their investment pay off. Unless you were lucky or smart enough to have sold high, and now be in position to buy low, you have seen your net worth plummet in the past months.

If you are like me, whatever is left in the markets may be there long term only because the gate is open and the horse is out of the barn.

For us, unlike Mr. Buffett, we don't have the luxury of taking whatever we have not invested in the markets and plunking a portion of it into a raging inferno. We need the safety net in our pockets to get us through these difficult times.

So Mr. Buffett, while I applaud your desire to give us sage advice, I am afraid for most of us it is too little too late.


elmira gulch said...

Buy American now. It is not too late. Eat cereal for dinner and reap the rewards. "Put your mouth where the money was"

Unknown said...

Bravo to Buffet ! No one should be a 'market timer' but one should buy when stocks are low; sell when high and never lose faith in the American way of overcoming problems. We are about to elect a black president !! What a loud statement of the greatness we stand for !! Invest in what America stands for and we will overcome our temporary difficulties with an alternative energy policy, health care reform, ending the war in Iraq, re-regulation of finance and restoring America's good standing in the world.

Robert said...

If everything you wish for happens, we will all be much the better.


Anonymous said...

I have always been a huge Buffett fan and would have to actually agree with him at this time. Even if you don't have cash sitting on the sidelines waiting to jump in and you have like all of us watched your accounts go south, if others begin to go back into the market it will lift the market and perhaps we will begin to see some of those accounts make up some loses. The only sure way of losing it all is to go into all cash now ( the typical investor reaction of selling low and then buy once the market really starts to heat up again; or buying high). So stay the course and if you do have some cash sitting on the sidelines I feel it is the time to jump back in as long as your horizon is still long term.