A few weeks back, United States Federal Reserve Chairman Ben Bernanke stated that the economy is “unusually uncertain”. This unusually explicit statement from the Chairman is alarming. And reminiscent of the fascinating Secretary Donald Rumsfeld’s statement:
There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we now know we don’t know. But there are also unknown unknowns. These are things we do not know we don’t know.
A few days ago, John Chambers, CEO of Cisco Systems, a bellwether for technology companies, echoed Bernanke and stated → continue reading The double dip recession is certainly here
Paula Schleis is the author of a valuable article titled Day with Warren Buffett enriching to University of Akron students in The Akron Beacon Journal. The article is based on a meeting between Warren Buffett and a few University of Akron students lead by Todd A. Finkle, Associate Professor of Management, Fitzgerald Institute for Entrepreneurial Studies, University of Akron. In this article, the most striking comments from Warren Buffett are not about investments but about friendship and love. While Buffett’s friendship test’s validity is debatable, what is clear is that he has learned from his life’s experiences.
Todd Finkle said many comments made a deep impression on him as well, but one he’ll never forget was in response to Finkle’s own question about the most influential people in Warren Buffett’s life. Among those Warren Buffett named was a friend who was a Polish Jew, taken to a World War II concentration camp after an acquaintance reported the friend’s hiding place to the Germans. Warren Buffett said ever since hearing that story, ”when he would begin friendships, he would ask the question: Would this person hide me from the Nazis?”
”Warren Buffett then went on to say that one of the most important things [if not the most important] was unconditional love. If you can find two or three people who love you unconditionally, you are a lucky person.”
In March, I wrote about Carlos Slim Helu on Stock Investments and Pier 1 Imports; at that time the stock price of Pier 1 Imports was about 15 cents. This stock price has risen to about $1.80, driven in part by insider buying worth over $2 million dollars by Greek Investments Inc. I didn’t buy the stock at that low price because I thought the company would file for bankruptcy. Greek Investments Inc. could have bought the stock at that low price but did not.
I am going to make a speculative buy of shares of a REIT that is involved with commercial real estate in Southern California, hold it for a year and see where it goes. The stock price is about 60 cents now.
 Warren Buffett Warren Buffett was on CNBC with Becky Quick and he said, “Our country will do fine even if we screw up”. I wish we screwed up less by not embracing concepts that work only for the short term.
He also felt that President Obama is right for our current economy and I agree with him.
I figured from what he said that Wells Fargo Company would be a bank to consider investing in over the long term. Its stock price is about $9 today. I think it will fall more and I intend to buy, just because Warren Buffet said so.
I don’t like listening to the financial analysts that come on CNBC anymore. But I will listen to Warren Buffet, any day, any time, even on CNBC.
- The only function of economic forecasting is to make astrology look respectable -John Kenneth Galbraith
 Carlos Slim Helu-Photo: Agencia Brasil Here is an excerpt from an interview of Carlos Slim Helu, Mexican billionaire, that appeared on CNBC approximately in February 2008 as the stock market was going down.
Michelle Caruso Cabrera: In 1982, when Mexico was falling apart, people were fleeing the country. You were buying assets that nobody else wanted, and at very good prices, that turned out to be very good investments over the long-term. Do you have the same opportunity right now?
Carlos Slim: What we do, most of our investments are in our own companies. The companies we manage are in a healthy situation, but we also manage some investment funds, mostly Mexican paper, now they are more open to invest outside, and these investment funds have a policy that when the markets are very low, they are heavy in equities. And when the markets are very high, doesn’t matter that it goes higher, the position of equities is very low. Let’s say 35 or 40 percent in equities and when the market is very low, they go 70 or 80 percent in equities, that’s why they have moved in these parameters in some ways.
Carlos Slim versus Warren Buffet: I think Warren Buffet invests, buys and holds for a long time, in simple businesses. Carlos Slim does the same, buys and holds for a long time but he also believes in market timing a bit more than Warren Buffet.
So far, Carlos Slim has invested in Bronco Drilling, Saks Inc. and New York Times. I think he figures that the market will go down more and I expect to see more investments in equities from him. I think when Carlos Slim makes his next stock purchase, that will probably be close to the market bottom.
Warren had made an investment in Pier 1 Imports several years back, its stock price is 15 cents now. Recently Warren Buffet took a loss for buying Conoco Phillips when its share price was too high, he did not anticipate the severity of the recession!!. Recently he has indicated that the market is going to be in shambles. We live in interesting times.
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About  I am a Civil Engineer from Louisiana State University. I coined the compound word, Americaneer, as an expression of my tribute. |
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