Pauly B

How the U.S. Financial Crisis Resembles Japan’s 'Lost Decade' - And How to Play It, Part II

When I see people like Warren Buffet in the headlines buying companies in times like these that is telling me something.

Sometimes one has to get the stock price out of ones head and look at the intrinsic value, earning power, and who is running the company. One also has to get the political, CNBC noise out too.

When you look at a stock chart 3 years from now and say gee, I wished I bought it down there, guess what, people like Warren did.

If you pull up a chart on the S&P from 1930 on I think one would see that that S&P outperformed gold.

I bet Warren looks at that long term chart too and says the risk reward isnt too bad in times like these to make investments in companies he is interested in. Maybe thats why he has outperformed so many investors.