Whatever little I can understand about this legendary investor he has been the best in timing market in 2006(Dow was 10-11K) he was holding 46% cash amount equivalent to $40billion and many questioned his investment rationale but in 2008 October he said he will shop in equities and he did when Dow was 7k-8k and many investment he made during last 18months has given him good returns. Important is by waiting he has made better returns than being invested fully, so Cash management is important in investing.
Point to note from all his previous speech, 2006 he did say Dollar will correct and in October 2008 he has made a point that Government measure to tide the crisis will have inflationary impact and investing in equities will be the good idea he said.
Now he is visiting India in March2011 and he has announced this 10month in advance and now itself many started to write about stock which Buffet would or could pick and he has allowed euphoria to built. I personally feel Buffet has timed his visit to invest when equity markets will be really attractive maybe 30% down from here as history has shown. EIC- Economy Industry Company has been his way of investing and he understand the cycle of economy well.
Read this Keynes economist or a Investor http://akprabhakar.blogspot.com/2009/09/keynes-economist-or-investor.html
(Reuters) - Warren Buffett said on Saturday (May1, 2010) he plans to visit India next March, and would not rule out the country for possible future investments. Speaking at Berkshire's annual meeting in response to a shareholder question, Buffett said he had decided only on Friday to make the trip, saying the company's Iscar Metalworking Cos unit "is doing very well there." http://in.reuters.com/article/topNews/idINIndia-48155420100502
Has the legendary investor timed his India visit by coming in 2011 March?
In October 2008, “policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts”. Said Buffet and as he started to invest in Equities after holding cash for long time http://www.nytimes.com/2008/10/17/opinion/17buffett.html
The most successful investor, Warren Buffett, has long held cash when he cannot find opportunities to deploy capital. As of the third quarter 2006 Mr. Buffett sat a top a huge pile of cash, over $40 billion. To emulate Mr. Buffett, one should hold cash until he/she finds opportunities which will earn returns sufficiently above the risk free rates offered by treasury bills with limited downside. http://www.gurufocus.com/news.php?id=4212
http://www.advfn.com/column3/berkshire-hathaway-holding-cash.html why is Berkshire Hathaway sitting on 46.5%, and why does Buffett opine that the U.S. Dollar is headed south for the next several years? (Article dated-03/27/2006)
1 comment:
Interesting stuff ,warren buffet does things well in advance ,Looks like you were able to read him correctly..
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