Warren Buffett Isn’t You. Don’t Listen to Him, Don’t Trust Him, He is Wrong.Tuesday, October 28, 2008
My article from last week, Warren Buffett, Government Propagandist, drew more emails than anything I can recall in recent times. There were 200+ favorable, and only three that disagreed with me. Some web surfing this morning revealed some others who joined the fray. This article, 5 Reasons to Ignore Buffett, is eerily parallel to my piece (sometimes point-for-point), and declares Warren a “verbal interventionist.” Then, here’s a piece by C.S. Jefferson that states:
The difference for the average investor is that while it’s common for legendary traders of Wall Street to mock how the sheep get sheared by buying at the top and selling at the bottom, they neglect to remember that most people sell not because they want to, but because they have to make bill payments and pay for basic necessities such as food and shelter. Sound advice by professional money managers falls on deaf ears when the margin of error means being able to feed your family or not.
Warren Buffett can buy with impunity, unlike the rest of us with limited resources. Because he is rich enough that whatever decision is made to invest, he can, literally, afford to be wrong until the markets turn around and agree with him at some point or another.
In the National Post, Diane Francis writes Buffett is Wrong: Avoid Stocks and Buffett is Wrong: Avoid Stocks, Part II. In the Sunday Times, Jennifer Hill writes Capital Hill: Buffett is wrong: the market madness is still far from over.