Ron Baron letter to shareholders. "There have been many credit crunches during my investment lifetime from which our economy has always rebounded sharply. Just as the credit crises in 1974⌠1987⌠1990⌠and 1998 ended abruptly, we think this one will, too, probably sooner than most of us expect."
âThe market timersâ âHall of Fameâ is an empty room.â Warren Buffett. CNBC. March 2008.
According to Warren, âI never have the faintest idea what the stock market is going to do in the next six months, or the next year or the next two daysâŚif I knew what was going to happen in 1974, I wouldnât have bought any stocks in 1973. I bought a lot of stocks in 1973 because I thought they were at good prices. Just like Iâm buying stocks now.â This strategy has obviously worked out quite well for him. Even for those stocks bought in 1973 when stocks meandered at about one sixteenth their current levels! As Casey Stengel, the legendary New York Yankeesâ manager used to say, âYou could look it up!â Weâve reported to you Warren Buffettâs opinion about predicting âmarketsâ many times previously (since we share his opinion). Since so many now advise caution and concern regarding your investments, we thought you might like to hear a bit of what the most successful investor in America thinks of the current environment.
â$1,000 an ounce for gold! $100 for a barrel of oil! $5,000 an hour for hookers!!! Who can afford this?!!!â Jay Leno. The Late Show. NBC. March 2008.
The $4 trillion offshore claim on Americaâs assets represents a little less than a quarter of the value of our publicly traded businesses (our stock markets), perhaps 80% of the value of our commercial real estate or about 7% the estimated value of our national wealth. As a result, we think you shouldnât expect significant additional weakness in the prices of U.S. stocks and real estate. This is because the individuals and sovereigns who own those dollars offshore will not likely be content for long holding a depreciating currency as opposed to investing in publicly owned U.S. businesses and commercial real estate that are likely to hold their value or increase in value.
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âThe market timersâ âHall of Fameâ is an empty room.â Warren Buffett. CNBC. March 2008.
According to Warren, âI never have the faintest idea what the stock market is going to do in the next six months, or the next year or the next two daysâŚif I knew what was going to happen in 1974, I wouldnât have bought any stocks in 1973. I bought a lot of stocks in 1973 because I thought they were at good prices. Just like Iâm buying stocks now.â This strategy has obviously worked out quite well for him. Even for those stocks bought in 1973 when stocks meandered at about one sixteenth their current levels! As Casey Stengel, the legendary New York Yankeesâ manager used to say, âYou could look it up!â Weâve reported to you Warren Buffettâs opinion about predicting âmarketsâ many times previously (since we share his opinion). Since so many now advise caution and concern regarding your investments, we thought you might like to hear a bit of what the most successful investor in America thinks of the current environment.
â$1,000 an ounce for gold! $100 for a barrel of oil! $5,000 an hour for hookers!!! Who can afford this?!!!â Jay Leno. The Late Show. NBC. March 2008.
The $4 trillion offshore claim on Americaâs assets represents a little less than a quarter of the value of our publicly traded businesses (our stock markets), perhaps 80% of the value of our commercial real estate or about 7% the estimated value of our national wealth. As a result, we think you shouldnât expect significant additional weakness in the prices of U.S. stocks and real estate. This is because the individuals and sovereigns who own those dollars offshore will not likely be content for long holding a depreciating currency as opposed to investing in publicly owned U.S. businesses and commercial real estate that are likely to hold their value or increase in value.
Read the complete letter
Also check out:
