Buffett has called the current mess an "economic Pearl Harbor." He recently said, "In my adult lifetime, I don't think I've ever seen people as fearful economically as they are now."
Berkshire Hathaway, Warren Buffett’s flagship company, had $44 billion at the beginning of this year. By the end of June, Buffett had spent it down to $31 billion in deals including Berkshire's purchase of Marmon Holdings, the Mars purchase of Wrigley, and the Dow Chemical (NYSE: DOW) takeover of Rohm & Haas (NYSE:ROH). He has even purchased auction-rate securities at bargain prices.
Lately, he's been accelerating his purchases even further. Buying names such as Constellation Energy, Goldman Sachs, and GE.
You don’t need to mimic Warren Buffett’s specific purchases to gain wealth. What is most important is to learn from his behavior. When valuations were right, he bought stock, regardless of what most people were doing. He avoided he herd and stuck to his discipline.
And it isn’t just Warren Buffett who is profiting from the current fear cycle of the market. Almost every day one of my wealthiest clients call asking, ‘Isn’t this a good time to buy more stock?’ They aren’t caught up in the news. They are watching the fundamentals and seeing opportunity.
What can you learn from the wealthy?
- One of roads to wealth is to focus on the economic fundamentals of the market, and avoid the emotions of the market.
- Understand your investment philosophy and methodology – have a plan – and stay the course.
May prosperity be yours,
Mackey McNeill
President and CEO
Mackey Advisors
www.CultivatingProsperity.com
859-331-7755
Mackey@CultivatingProsperity.com
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