The Oracle of Omaha Opines
The Situation The Sage of Omaha (aka Warren Buffet) has experienced the effect of a market downturn. The general economic performance of the country has directly impacted the general profitability of one of the titans of industry. The profits for the year of 2007 were reduced by 18% from the previous year. One of the largest conglomerate holding companies experiencing a substantial negative shift in profitability during an impending recession might at first glance indicate that the stock market is not an inviting place for financial investments. To the contrary, the bear market is the perfect time to buy into the market. For the long-term investor this is an opportunity to buy into stocks as a sound investment vehicle. These regular fluctuations in the market are an inevitable result of the reflection of the overall strength of the economy on the stock market. Mr. Buffet is evidently modifying his investment strategy now in 2008 just as in the bear market of 2002. The Statisti...