Buffett Says "Short Uncle Sam"

“Buy American. I am” was the headline in The New York Times Friday, over an op-ed in which Avuncular of Omaha re-dished such hardy chestnuts as “Be fearful when others are greedy, greedy when others are fearful” and Wayne Gretzky’s “Skate to where the puck is going.” 

So...I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds.

The usual suspects spun the ‘Buy America’ message for all it was worth. Nobody seemed to notice the other side of the memo: sell Treasuries. Which, thanks to the flight-to-safety trade, are perhaps the last bubble intact amidst the financial smeltage. With new supply aplenty assured.

Buy American. I Am. 

by Warren E. Buffett

The New York Times Oct. 17 2008

Disclosure: Long TBT. As always, early, which is indistinguishable from being wrong. So far.

Comments

[rhinesmith@...:]

I've been playing the market for 50 years. I just finished Buffetts book The Snowball. I was amazed to learn that his motives were so much like my own. It all boils down to BUY WHEN NOBODY WANTS THEM AND SELL WHEN EVERYBODY GETS IN. And of course you do have to checkout the financial statements and management of the companies you wish to invest in I have spent many hours in offices of CEOs checking out small banks and it has paid off big time. If you are afraid of them , DON'T be. Most of them like to talk about their accomplishments and even brag a little.Lots of luck in your future .

2008 Oct 20 04:33 PM

[Tom Jacobs:]

The only problem with the previous post is that Buffet never sells. Look at all the money he left on the table holding 200 million shares of Coke in spite of its bubble level high of 87 back in 1998.

2008 Oct 22 09:53 AM