Special Situation Investing

Tuesday, February 27, 2007

Buffet - Words of Wisdom

Thought this quote was rather appropriate on a day like today.

"Unless you can watch your stock holdings decline by 50% without becoming panic-stricken, you should not be in the stock market."

Warren Buffet

Let's get back to the market. Nothing has fundamentally changed in my view. So Chinese banks can't loan out quite as much money. This was announced in advance, I remember reading it. I mean let's think about what is happening here. The Chinese government is taking steps to temper growth and prevent recession. What is wrong with that? Would the market have preferred if they let the train run off the tracks? When I read about the major recessions in Japan and in the US it seems one of the biggest problems was the government stood idly by. China may or may not hit a recession but long-term I view the current situation as a positive. The biggest risks when investing in China are political not economic in my view.

Somebody had a run at Cheney? How is that different from any other day? Don't get me wrong, I feel the situation is horrible and I really do have sympathy for those who lost their lives in the attacks. However, I also have sympathy for those who have lost their lives in all the prior suicide bombings that the market completely ignored. I don't see what the difference between today and any other day was.

Greenspan thinks there might be a US recession. He says the bull market is long in the tooth. Jesus christ, is this not something people could have figured out for themselves? Is he doing anything other than validating what anyone who went through the last bubble/crash is already thinking?

I don't know what is going to happen tomorrow or even this year but staring at these long rows of red I can't help thinking that maybe, finally prices are going to get back to levels where I can really start buying again.


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    By Blogger Harry, at 1:21 AM  

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