Wise Words

I will tell you how to become rich… Be fearful when others are greedy. Be greedy when others are fearful.

— Warren Buffett

As everyone well knows, our economy has gone straight to hell over the last seven years. The only good thing about this is that some stocks are at or near all-time lows right now due to the knee-jerk reactions of so many terrified people. There are some great bargains out there right now because so many people are afraid of losing their money. Real investors know that strong companies with undervalued net asset values will only grow in the years to come. What we’re seeing now is the antithesis of “irrational exuberance.” Value Line exists for a reason, and it’s available for free @ the Library.

September is perennially the weakest month for the Market… Time to be greedy.


~ by Woeful on August 26, 2008.

4 Responses to “Wise Words”

  1. I love when Value Line comes in on Thursday, so I can have it out and ready for Friday’s crazy Value Line fans. But the other week it came in the next Tuesday and I was like OMG they’re gonna have my head!!! :O

  2. Yeah, I know some people are like Value Line zombies! In all seriousness though, if you don’t already have an E*Trade account open one right now and buy some shares of a strong company with a low share price. If you haven’t a clue go to their analysts recommendation’s page and pick from there, or look at company’s Jaywalk Consensus Rating. You want them to be placed as close to the top right corner of the graph as possible. It might take a year or two to realize any significant gains but the prices are near the bottom right now. Sure, they can and probably will slide a little bit farther but either way we’re near the bottom of the curve. Either get it on the way down or on the way up, but get it!

  3. I have am Ameritrade account. What do you think of them?

    I love Warren Buffet. He is definitely “the man.”

  4. I never used Ameritrade or Scottrade (sp?) but I imagine they all do about the same thing for about the same commission? E*trade does what I need it to do and more. Buffet is an amazing investor… And he still won’t invest in a tech stock not even Microsoft or Google. But he has said that the 19th Century belonged to the British, the 20th Century to America, and the 21st belongs to China… Buying solid Chinese companies is going to make some people very rich.

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