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Secrets of the Oracle: Warren Buffett 'Goes Right Where the Agony Is'

Posted Jun 05, 2008 12:02pm EDT by Aaron Task in Investing, Newsmakers, Banking

For Warren Buffett, "be fearful when others are greedy and greedy when others are fearful" isn't just an empty slogan -- at least not judging by his most recent disclosures.

In the first quarter, during the midst of the credit crunch, Buffett added to his holdings of US Bancorp and Wells Fargo, notes James Altucher, managing director of hedge fund Formula Capital and author of "How to Trade Like Warren Buffett" (among other books).

"Warren Buffett goes right where the agony is because usually that's where the value can be found," says Altucher.

Speaking of agony, Buffett's Berkshire Hathaway is a big shareholder of Moody's, whose shares have plummeted this year amid criticism and regulatory scrutiny over how the firm rated subprime mortgages and other derivative securities.

95 Comments

omer
omer - Thursday June 05, 2008 12:16PM EDT

yes, keep listening these jerks, and loose your money because they are waiting there just to get your money to feel better. Here is my suggestion, don't let these sharks get your money,..spend it for yourself and for your family, education, don't invest on stock market, because these sharks will be waiting there to get your money soooner or later because we are not smarter than them and they have enough money to speculate.

finance1
finance1 - Thursday June 05, 2008 12:24PM EDT

cool

mike
mike - Thursday June 05, 2008 12:24PM EDT

I am wondering if South Korea isn't just as big an opportunity. A lot of positives in an established economy and the SK market as a whole has been absolutely hammered this year.

you
Yahoo! Finance User - Thursday June 05, 2008 12:26PM EDT

Yeah, I second that thought. If you're clearly so undereducated that you can't put together a clear line of thought and express yourself with correct grammar, then you should definitely stick your head in the sand and not invest in the stock market, which rewards ONLY the well-prepared.

valueman
valueman - Thursday June 05, 2008 12:32PM EDT

People like omerturan fascinate me, because they think the market is out to get them. If you practice value investing, you will eventually become wealthy. You just need an iron stomach to ride out the volatility. If one keeps complaining about how one should not invest in the stock market, they will be forever poor. Investing is not an option. It is mandatory if you wish to escape the desk job....

you
Yahoo! Finance User - Thursday June 05, 2008 12:34PM EDT

I'm surprised that Tech Ticker prints such an article. Until now, TT's theme is, "doomsday is here", "don't buy anything that's down", "stick with what's flying" (i.e. commodities). Small wonder that, with vehciles like TT yelling in peoples's faces, that their returns are so low. Like Warren Buffet is doing, i'm buying housing, financials, and all I can find that's in the dumps. The dumb doomsday screamers will have their fun for a day, a week a month, laughing at me. Check back in 5 years, we'll see who is laughing.

nippyg
nippyg - Thursday June 05, 2008 12:54PM EDT

Omerturan, you articulate your thoughts like a true democrat (you have absolutely no idea about what you are talking about). Instead of tilting up suds with the buds and playing video games all day, how about reading a book once in awhile and educating yourself in matters relating to business and/or economics (especially classical econ as opposed to Keynesian economic theory). Instead of giving advice to others, you should heed your own (at least until you are better educated).

Anastos
Anastos - Thursday June 05, 2008 12:55PM EDT

That's the kind of guy who probably bought one stock once and it went down and now is convinced the system is out to screw him. You shouldn't be here if you don't have a clue of what you're doing. I'm not going to be confused with WB anytime soon but I at least take the time and effort to make what I think are smart plays. Bags of cash just aren't going to fall out of the sky and into your lap....

lynnmyra
lynnmyra - Thursday June 05, 2008 12:57PM EDT

no one can time the market even buffett but if you follow his advice over time you will see your portfolio increase in worth i bought wells fargo when everyone said it was going down the drain except buffett from $50 it split 10 for 1 an then 2 for one so even at $27 it is equal to $540'

Ricko
Ricko - Thursday June 05, 2008 12:58PM EDT

The Rothchilds built their empire over the centuries by buying when there was blood in the street.

Teflon R
Teflon R - Thursday June 05, 2008 12:58PM EDT

I'm with valueman. It's totally foolish not to invest in the market. Inflation will erase you cash, money market, and CD holdings in due time. Placing your money in the market is the best way to beat inflation. It has also -since its inception- moved upward as a whole, outpacing inflation. Putting your money into broad index funds, precious metals, some gold, REITs, and certainly abroad is the best way to hedge and protect as your money grows. There are very cheap ways to avoid having any broker take your money too. ETFs, indexes, and free trading brokerages like Zecco make it dirt cheap. I spend less than .5% for all of my investments. Oh and as for Buffet he's a genius. I hold sevral shares and sleep well at night. Visit a site and locate his yearly report to shareholders. You'll find he's completely reasonable, witty, and unconcerned about taking your money.

Teflon R
Teflon R - Thursday June 05, 2008 01:00PM EDT

I'm with valueman. It's totally foolish not to invest in the market. Inflation will erase you cash, money market, and CD holdings in due time. Placing your money in the market is the best way to beat inflation. It has also -since its inception- moved upward as a whole, outpacing inflation. Putting your money into broad index funds, precious metals, some gold, REITs, and certainly abroad is the best way to hedge and protect as your money grows. There are very cheap ways to avoid having any broker take your money too. ETFs, indexes, and free trading brokerages like Zecco make it dirt cheap. I spend less than .5% for all of my investments. Oh and as for Buffet he's a genius. I hold sevral shares and sleep well at night. Visit a site and locate his yearly report to shareholders. You'll find he's completely reasonable, witty, and unconcerned about taking your money.

i. b. smarter
i. b. smarter - Thursday June 05, 2008 01:02PM EDT

They are waiting to get your money. That is a fact. It only applies to "goofs" who think that way. There is a concept some people just never get. It's called ' responsibility'. If you act in a responsible way you win. If you act irresponsibly you lose. It's that simple.

Paul
Paul - Thursday June 05, 2008 01:13PM EDT

Isn't there anybody else in America that you can quote other than Buffet, Gates, Icahn, and Soros. Why does Soros get to testify before CONgress, and us little guys, seldom do? Never ever will a multiple billionaire, tell you what he is doing rigt now, so you can become rich too. In fact, they always tell you the exact opposite, and it is a BIG lie. It was just two weeks ago, that Buffet, said the credit crises was not over, and he was waiting before buying anything. Now, per the above article, he has alreay bought more Wells Fargo stock. All these guys, need to either be quite, or give all their money, to help the many Ameicans who are losing their jobs, houses, and living in their cars, that they no longer can afford to drive, due to "other rich guys" playing (hedge funds) screwing everybody at the pumps. The oil crises is fake just like it was in 1928, 1974, 1980. It's all about money as my wfie says. Take your money from you and give it to the them, rich folks. I will start driving, like I use to, when gasoline is $1.50 gal. and oil is $40barrel. That is a fair price!! When is enough, enough for the FAT CATS?? Please stop telling us what these guys are saying, We don't want to know PERIOD!! Just have them shutup.

Moe
Moe - Thursday June 05, 2008 01:16PM EDT

Omerturan, I have to agree with you that they are sharks, but that does not mean you can't swim with them. That just means you need to understand what you are investing in. I am going to give you advice that should save you some money,DON'T Lisen to anyone. NO BODY KNOWS NOTHING. You need to self educate if you want to play this game.

i. b. smarter
i. b. smarter - Thursday June 05, 2008 01:29PM EDT

How can you say the price of gas is because of the Corporations? Gee, a 40 billion profit by Exxon is so little these days. Its your duty as a working person, and tax payer, to support them. You don't want them to make a smaller profit, and be fair do you? How would they be able to gouge you if that happened?

cervezero
cervezero - Thursday June 05, 2008 01:31PM EDT

Omerturan = an obviously astute investor What institution of higher learning did you get your finance degree from? Hello?

Brian S
Brian S - Thursday June 05, 2008 01:34PM EDT

Omerturan must be a 10 year old kid. Spend, Spend, Spend that is a great way to financial freedom. However, Omerturan will be the first to say how hard life is, and how much debt he/she has, and continues to struggle with debt.

Jay
Jay - Thursday June 05, 2008 01:35PM EDT

Please ignore Omerturan. He can't even put together a complete sentence in a correct manner.

John
John - Thursday June 05, 2008 01:35PM EDT

You don't want to testify before congress; if you think oil's going to $40., you should run for congress. Most politicians are as misinformed as you; you'll fit right in.

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