Another point to ponder!  Is keeping cash a good move?  Cash is liquidable and a lot of things else.  But is it wise to hoard them?   Not so …. according to Mr Warren Buffet; this is what he said … maybe we should listen to him:-

Today people who hold cash equivalents feel comfortable.  They shouldn’t.  They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value.  Indeed, the policies that government will follow in its efforts too alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts.

Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzky’s advice: “I skate to where the puck is going to be, not to where it has been.”

By the sound of this report which was extracted from “The New York Times”, looks like it is wise to look at Equities especially now….

Yes,  I know…. decision, decision and decision… That’s what life is all about!

With today’s economic situation, we are all in quandary and I am sure even the most experienced and expert investors are finding it hard to make the right decision or any decisions at all. We kept on reading and hearing that “The worst is yet to come!” Nobody knows when this perplexity is going to bottom out. We can all just give it our good guess and your guess is as good as mine!!

But after reading what was written by the financial guru, Mr Warren Buffet, on “Buy America, I am” in The New York Times on 16 October 2008, I guess we have to be brave to ride out the turbulence!!  I kind of like his simple rule ~~ mind you simple and yet very powerful ~~ “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.”

Mr Warren Buffet further mentioned as follows:

“Let me be clear on one point: I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month — or a year — from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.”

Mr Warren E. Buffett is the chief executive of Berkshire Hathaway, a diversified holding company. Do read about him and his success and then his advice will be more valuable to you.

So like everyone said “The Worst is Yet to Come!”  Are you waiting for the rock bottom before deciding to buy? The decision rest on you and you alone!!

According to the book “The New Buffettology”, there are 4 areas in which Warren Buffet discovers companies with hidden wealth:-

1. businesses that have a repetitive consumer need with products that wear out fast or are used up quickly and have brand appeal
2. the advertising business
3. businesses that provide repetitive services that people and businesses are consistently in need of
4. products that most people have to buy at some time in their life.

These 4 areas are very closely related to consumer demand and expenditure. In summary, they are a business simple to understand, with good management, attractive prices and has long term prospects.

continue reading "The New “Buffettology”"

In an one-hour interview with CNBC news, Warren Buffet, the 2nd richest man who had donated USD31 billion to charity has the following interesting aspects of his life to share:-

1. He bought his first share at the age of 11 and he now regrets that he started too late!! Ermm… where was I when I was 11? Giggling with my school friends…. interesting difference.

2. He bought a small farm at age 14 with savings from delivering newspapers. This brings back memories of my twin sister and brother selling newspapers in a fun fare site… it brought tears to my eyes seeing them so timidly trying to earn a few cents.

continue reading "Warren Buffet - the interesting aspects of his life"