After Warren Buffett’s NY Times article declaring its time to get greedy, the market has dropped some leaving some financial journalist to question the Oracle’s call. I have seen several such articles in which they claim Warren Buffett has lost his touch. I would disagree with them. Late last month, Michael Mauboussin of Legg Mason had an awesome piece titled Where From Here? (click here for link). I think the following image will give the critics something to ponder. The image only goes back 10 years, but it could also go back several decades and one will see how accurate Buffetts calls have been and how wrong these financial journalists are wrong in the short term. (emphasis on short term)
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Hi,
This is a wonderful post. Thanks for sharing.
By the way , do you know whether did Buffett buy the preference shares from these companies or did he buy the normal shares straight from the market? I am still looking for the answers which I think could make a big difference in terms of protecting the capital.
ren
Ren
Are you talking about GE and GS? They were preferred.
I remember in the dot-com bubble when journalists brushed Buffett off as a man of the past for not buying internet stocks.
The buy and sell points on that chart are damn impressive, I sure hope the oracle is right again!
Buffett will be proven correct over the long run.