When Warren Buffett Speaks, I listen.

October 23, 2008

It’s hard to live in the United States and not know who Warren Buffett is but for those who don’t know him, he’s currently the richest person in the world ($62 billion at the end of 2007). He also happens to be the CEO of Berkshire Hathaway and one of the most respected investors ever. Buffett doesn’t speak out very often but when he does, his blend of common sense and business acumen cannot be matched. Therefore, I thought it would be worthwhile to forward you the link to the editorial he wrote on October 17 which appeared in the New York Times.

http://www.nytimes.com/2008/10/17/opinion/17buffett.html?_r=2&oref=slogin&pagewanted=print&oref=slogin

In this piece, Buffett reviewed the challenges faced by America over the last 100 years and how we overcame those. Well known for folksy quotes, Buffett reiterated one of his favorite sayings, “Be fearful when others are greedy, and be greedy when others are fearful.”

Just like us, he doesn’t know exactly when things will get better but he is optimistic that we will look back ten years from now and see this as a great buying opportunity in stocks. He also raises concern about the potential for higher inflation because of government actions. We share this concern and are looking into opportunities that will help mitigate this risk.

As we continue to work our way through this financial mess, we encourage you to stay in touch with us. Additionally, please feel free to forward our Client Communication Briefings to your contacts if you feel they would benefit from them. If you would prefer, send us the email addresses and we’ll include your contacts in our distributions.

Appreciatively,

Michael Haubrich, CFP

President