Jump to content

Forbes on Buffett


Recommended Posts



I'm sure everyone has seen this but thought I'd post anyway. Anything on Buffett is phenomenal as always, but the article in 1974 is especially interesting considering the similarities between then and now with predictions of depression and global calamity, and investors flocking to gold. Buffet has an excellent quote at the end of that article saying that if all you're worried about is depression, profits and panic, then those things don't bother me at these prices.


We are staring another crisis right in the face (http://pragcap.com/preparing-for-a-credit-crisis) yet the market is overvalued based on the thought that governments will simply come riding to the rescue. Even though individual stocks are undervalued, prudence calls for holding cash and/or hedges in today's environment. It's unlike anything we have seen since the Great Depression - energy is going to get hammered, consumer demand is going to get hammered, and global Econ activity is going to get hammered. Even something as seemingly cheap as Sandridge can get a while lot cheaper if oil trades down to $65. An energy long short HF manager recently told me that at this point in the energy cycle common sense says to hold an XOM on the way down and an SD on the way up.


All that to say, depression, panic and profits should bother us at these prices.





Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...