Can You Still Believe in Buffett?

ABC news had an article, that asked if we could "Still Believe in Buffett."

ABC News' Bianna Golodryga reports: On a day when the Dow lost another 400 points or so, when Citigroup touched below $10 a share, GE is below $16 and Goldman is down another 9 percent, one major investor points out that the Oracle of Omaha's investment strategy has disappointed even his staunchest supporters.

Both Buffett's personal and business (Berkshire Hathaway) holdings are tanking, like everyone else's, and the insurance part of his business has seen huge losses from hurricane claims this year following hurricanes Gustav and Ike.

To his credit, Buffett has lived up to his nickname of "sage" during the current financial crisis. His voice, his rhetoric, his humor and his easy-to-understand logic have together made a welcome and reassuring voice for everyone from President-elect Barack Obama to the average man on the street. He's the toughest man to get an interview with these days, and his every word can move a stock. He's said this is the worst financial crisis he's seen in a long time, if ever.

The article points out that there are three (3) perspectives to look at this from.

1. When he says he's a long-term investor, he really means just that, long term!
   


2. No one is perfect, and even the smartest investor in the world makes mistakes.


3. Today's Buffett is more of a symbolic and iconic figure than a master stock picker.
   

The article was very well written. To answer the question, there are going to be up's and downs, I invest for the long term, and do not pay attention to the market that closely. If I were, then I would just be sick to see the hit my investments (what little, I have). No, instead, I just sit back and hold on, because it is going to be quite a roller coaster ride. In 20-years, the investments and retirement accounts will up quite substantially. That is, unless the government gets a hold of those retirement accounts.

There has been reports, that President-elect Obama wants to confiscate 401(k)'s and retirement accounts and merge them with the Social Security funds only earning 4%. If that were to happen, then I would lose the average 12% my retirement accounts could earn over the long haul. In fact, if, and I think it is a big if, that were to happen, I would cut my retirement investments and invest the difference privately (in non-retirement accounts).





---
go ahead share your thoughts with me now.