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

sirsidorama, Charlie Munger said at the recent annual meeting that he is a Republican and sometimes Warren sounds like a Democrat. Maybe we should just leave party affiliation out of it. Most of my net worth was not made in the market but a significant amount of it is now in BRK. With the majority of the above responders leaning in the same direction, my market position should concern me.

Me caveman. Me invest in VTI, VEU & BND. Me soon buy bigger cave.

Well, I am seeing bunch of potential loser here. then, keep putting money for stocks, following WB. Maybe one day you can be a rich guy like him when you became 70-80 years old shark with limited time to spend. (Besides, FYI, I am investing on world stocks markets making good fortune, I have master degree in engineering) I am making money from the people like you (WB does the same) not from the stocks. Think about it, when you are greedy he is fearful,...:-) That is what I am trying to say. don't get stuck with others grammer or education or reading books. (spending more) good luck to all potential losers here,..I am waiting for you.. don't worry I am one of those sharks. (waiting for you)

pmfunk is not going be driving in this lifetime. Oil is not going down to that low ever again, those days are gone just like 25 cent movies at the theater. But if you had bought oil on the market at 50 a barrel then right now you could drive, because you would have been rich. You may bnot agree its fair for them to make money like this but remember all the people investing in .com in 2000 and went bust risked there pay and lost. Business owners gamble there money in successful business and loose everything everyday, but some actually become rich. SO while I make money off of not so good investers that make horrible decisions, I will actually be making money to pay for higher fuel costs.

Omerturan, you seem to be taking the position that investing in stocks is pure speculation. It's not. People who make money in the market learn how to use all the research tools available to screen stocks before they buy them. They don't just close their eyes, jump in and hope for the best. Open an online account with a firm that can give you these research tools. Create watch lists for stocks that interest you and research them. Over time, it will become extremely clear which stocks are consistent winners and which are not. Sure, unexpected things can happen that can cause the market to crash. Nobody can predict everything and there is a lot of risk. But if you educate yourself and learn how to use research tools you will be able to avoid the stocks that speculators are pumping and dumping and learn how to recognize sound solid stocks that will make you money.

The fact of the matter is we all have opinions and that's what these coment sections are for. Calling someone's opinion "dumb" isn't exactly the smartest thing either. Let's spend time posting comments that will make us all better investors. The fact is most money managers don't outperform the markets over the long-term. In reality, we are here to make money on the side or earn a living that is comfortable to our standards, not many of us will be retiring early off of this trade. So my "opinions" are as follows: spend your hard on money on yourself and family (note: these can be investments like education), keep your transactions cost low like Teflon mentioned (this is so underrated), look international and emerging markets, only invest in undervalued domestic stocks at this point (I admit I don't analyze growth stocks well), and buy for the long-term (again to reduce transactions costs). Finally if we all were as smart as we think we are...they'd be writing this article about us.

Even me caveman can see omerturan is smart as bundle of sticks and me no leave cave.

Omerturan is scared - many Americans are. Instead of berating him, how about trying to help him. Provide suggestions and coaching, similar to Valueman. As far as "sirsidorama," I find his ignorance far more disturbing than Omerturan. Let's give him the benefit of the doubt and say Democrats want to tax you at twice the rate of Republicans, 20% vs. 10%. For the example, I'll be the rich ($1,000,000) and he can be the less rich ($100,000). In a Republican tax system I would net $900,000 and he would net $90,000. The difference in our incomes would be $810,000. In a Democratic system, I would net $800,000 and he would net $80,000. Our difference in income would be $720,000, or $90,000 LESS in that economy. Yes, you would have less money in the absolute, but the fact you are missing is "richness" is a relative game. Your dollar will buy you more when the gap between the richest and the poorest is smallest. Since you obviously are not rich yet, perhaps you should consider voting for Obama; he'll use more of the richests' money to fund the scholarships and social programs for which you will probably qualify.

stock market shares and real estate stand for value. what else is left ?

I can't wait for the market to finally correct and go in the direction it should be just like in the dot com implosion. It's tracking sideways way too much, makes no sense really. Got Herpes? H-Date.com, date other with herpes today. The intrinsic value is high.

it is not rocket science, wb knows this....buy low (panic) sell high (irrational exuberance).... if you need help with this, have a healthy dinner & unhealthy desert with your nearest 6 year-old ....now get back to work. xxoo

Omerturan expresses the financial sophistication of way too many US citizens. Our schools don't teach our kids about finance or the economic system (and apparently not much about reading or writing either) -- they have to rely on sound bites from politicians who rail against corporate greed while at the same time they (the politicians) are heading to the corporate trough for campaign contributions.

I agree with the article. If the company is still a good company, the best time to buy is right when the price bottoms out. People could have made a fortune on K-mart if they bought when it bottomed out. The sharpest stock increases normally happen right after a stock bottoms out. The hard part is figuring out where the bottom is, but normally that can be somewhat done by looking at the stock's history. The same can be said of top out prices. When my dad was close to retiring, Pfizer stock would reach about $45/share then plummet. I told my dad. Wait until it gets close to $45 again then sell. He waited a little too long, but it got up to near $45 then dropped.

hello...one more thought....ya'll "players" seem to honestly believe that the information you have access to is the same as that of the super-wealthy? (you might want to wake up and check because the coffee may be spilling all over the counter by now) ....wb's track record just might be because he knows, while the rest of us peasants hope xxoo

How Funny, Buffett never speaks about his loses, only about his "great ideas" and BIG GAINS!!! I am working in the stock market for over 20 years now and I never saw ONE GUY not having lost some dough at some point or another in his/her carrer. Articles are nice, you can waste your time reading them but I can't follow either one, too biased! Doomsdayer's will always raid the internet with some apocalyptic "advice" handy, folks just follow the money and you'll know who is right! They all talk about "bad bad times" but buy up all the s..t they can put their filthy hands on! Got my drift!?

I have been investing in the markets for 35 years I am not "rich" but we are very comfortable and have been retired many years. Invest wisely and you will do well over time. Invest in an unwise manner and you will be working until you die.

I like how everyone forgets that Warren Buffet makes mistakes too. Take the time to read the Berkshire Hathaway annual reports and he is more than happy to point out to his shareholders (partners) that he has made some mistakes costing millions, if not billions. omerturan also forgets that WB was wealthy in his 30's and 40's too. Not just now. All the information every investor needs is in the income statement, balance sheet, and statement of cash flows. The only problem, as WB has stated in his annual letters, is that CEOs are too often pressured to fudge the numbers to get the stock to go up. The reason billionaires are asked their opinions is because they are educated, intellectually gifted, and have put together a working picture of how the world, economies, and finance works. They don't just stare at a chart and pull the 'buy' trigger because Cramer said so.

I like how everyone forgets that Warren Buffet makes mistakes too. Take the time to read the Berkshire Hathaway annual reports and he is more than happy to point out to his shareholders (partners) that he has made some mistakes costing millions, if not billions. omerturan also forgets that WB was wealthy in his 30's and 40's too. Not just now. All the information every investor needs is in the income statement, balance sheet, and statement of cash flows. The only problem, as WB has stated in his annual letters, is that CEOs are too often pressured to fudge the numbers to get the stock to go up. The reason billionaires are asked their opinions is because they are educated, intellectually gifted, and have put together a working picture of how the world, economies, and finance works. They don't just stare at a chart and pull the 'buy' trigger because Cramer said so.

I like how everyone forgets that Warren Buffet makes mistakes too. Take the time to read the Berkshire Hathaway annual reports and he is more than happy to point out to his shareholders (partners) that he has made some mistakes costing millions, if not billions. omerturan also forgets that WB was wealthy in his 30's and 40's too. Not just now. All the information every investor needs is in the income statement, balance sheet, and statement of cash flows. The only problem, as WB has stated in his annual letters, is that CEOs are too often pressured to fudge the numbers to get the stock to go up. The reason billionaires are asked their opinions is because they are educated, intellectually gifted, and have put together a working picture of how the world, economies, and finance works. They don't just stare at a chart and pull the 'buy' trigger because Cramer said so.

I like how everyone forgets that Warren Buffet makes mistakes too. Take the time to read the Berkshire Hathaway annual reports and he is more than happy to point out to his shareholders (partners) that he has made some mistakes costing millions, if not billions. omerturan also forgets that WB was wealthy in his 30's and 40's too. Not just now. All the information every investor needs is in the income statement, balance sheet, and statement of cash flows. The only problem, as WB has stated in his annual letters, is that CEOs are too often pressured to fudge the numbers to get the stock to go up. The reason billionaires are asked their opinions is because they are educated, intellectually gifted, and have put together a working picture of how the world, economies, and finance works. They don't just stare at a chart and pull the 'buy' trigger because Cramer said so.