Stop whatever you’re doing with that mad money, because now is the time to invest, apparently. In an Op-Ed piece in today’s Times, professional rich guy and and Barack Obama’s other BFF, Warren Buffett, attempts to teach us all a lesson. Buy American stocks, he says:
Today people who hold cash equivalents feel comfortable. They
shouldn’t. They have opted for a terrible long-term asset, one that
pays virtually nothing and is certain to depreciate in value. Indeed,
the policies that government will follow in its efforts to alleviate
the current crisis will probably prove inflationary and therefore
accelerate declines in the real value of cash accounts.
will almost certainly outperform cash over the next decade, probably by
a substantial degree. Those investors who cling now to cash are betting
they can efficiently time their move away from it later. In waiting for
the comfort of good news, they are ignoring Wayne Gretzky’s advice: "I
skate to where the puck is going to be, not to where it has been."
don’t like to opine on the stock market, and again I emphasize that I
have no idea what the market will do in the short term. Nevertheless,
I’ll follow the lead of a restaurant that opened in an empty bank
building and then advertised: "Put your mouth where your money was."
Today my money and my mouth both say equities.
Calm, measured, reasonable. Hockey and food metaphors. But what if you’re just trying to put your kids through college? Also, this is a just little late for that poor lady whose cash literally burned up with her house the other day. Yeah, that.