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Warren Buffett this morning


jq26
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08:32 ET Dow , Nasdaq , S&P : [bRIEFING.COM] S&P futures vs fair value: +9.50. Nasdaq futures vs fair value: +13.50. Futures gain some ground as Warren Buffett gets interviewed on CNBC. Buffett said in five to ten years we will look back and see that there were some extraordinary buying opportunities.

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  • 3 weeks later...
Buffett said in five to ten years we will look back and see that there were some extraordinary buying opportunities.

No joke... There has been some incredible steals made by sound solvent companies and a few billionaires... Right now is the best time for some of these outfits to practice the dogma of buy ridiculously low and sell for outrageously high...

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I agree 100%. There are many companies swimming in debt that have low PEs which will have earnings reductions coming that will make their PEs skyrocket. But there are companies out there with $0 debt who will thrive. And those companies have been thrown out with the bathwater.

I'm seeing PEs on some companies thta are now below 5. Solid companies with GROWING revenue.

In addition, energy costs have plummeted. I think many companies will offset decreases in revenue with decreasing costs. Commodities have tumbled. Look at corn, wheat, aluminum, copper, oil, NG, whatever. They are down across the board. Raw materials have plummeted. It certainly matter to the bottom line. People are pricing in a complete disaster to GDP. Imagine the short squeeze that occurs if companies just report in-line.

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Are you talking about things like General Motors falling to its lowest price since the 50's?

Is that 1950 dollars or '08 dollars? If that # is not corrected for inflation, GM has even bigger problems!:shock:

http://www.minneapolisfed.org/

Use the calculator on the right side of the page. Put 1950 in the first box.

If you really want to see what's happened to the dollar, put the first year of the Fed (1913) in the first box. Yep, that's the Govs own numbers.

Goldbug

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Personally, I can't see the DOW getting into the 7000s....I agree with Suze Orman about the bottom nearing 8200, though perhaps she might be trying to put a smiley face on a real messed up situation Wall St. is going through.

Best thing I can advise is if you can find a way to move money around, increase your contributions to your 401K plan. Buy cheap.

One thing I'm curious about is if the DOW will ever see 20000 around the time of our retirements (20-30 years)?

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