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Buffett vs. Cramer: Time to Buy or Sell?

Posted Oct 06, 2008 07:56pm EDT by Aaron Task in Investing, Newsmakers

Two of the most storied investors in modern finance are squaring off as the market gyrates.

On the one hand, legendary investor Warren Buffett has invested billions recently with investments in GE, Goldman Sachs and Constellation Energy, among others.

On the other hand, former hedge fund titan and market pundit Jim Cramer made a remarkable "sell stocks if you need the money within the next 5 years" declaration on NBC's "The Today Show" Monday morning.

The question for investors is which guru to follow? At the Value Investing Congress in New York Monday the answer was clear: Buffett. Value investors are licking their chops at opportunities to invest in quality stocks, including Buffett's Berkshire Hathaway, they believe are trading at incredibly attractive levels, as detailed in the accompanying video. (Meanwhile, Henry Blodget sees tremendous value in Apple.)

While it's fun to pair them off, the reality is Buffett might actually agree with Cramer about the next five years; it's unknown but pretty certain Buffett is thinking far beyond that time-frame. The Oracle of Omaha is the ultimate long-term investor, having famously describing his favorite holding period as "forever."

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375 Comments

djcroke
djcroke - Monday October 06, 2008 08:07PM EDT

Didn't Cramer call "THE BOTTOM" a couple of months ago and advise everybody to buy, buy, buy. He has zero credibility...

you
Yahoo! Finance User - Monday October 06, 2008 08:08PM EDT

this is the time to buy, not run, kramer is a big idiot!

Alex
Alex - Monday October 06, 2008 08:11PM EDT

Who the heck listens to Jim Cramer anyway? He was the one who said the market bottomed in August.

Yahoo! Finance User
Yahoo! Finance User - Monday October 06, 2008 08:15PM EDT

Comparing the Oracle and the TV stock master itself is a non-sense. Cramer makes money by being a showperson, not a long-term investor. Cramer makes money by driving people into fear and panic. The Oracle builds his wealth by eternal holding, an investment philosophy no one in the world can figure out. Who would you choose between the two? I would definitely go with the Oracle.

you
David L - Monday October 06, 2008 08:15PM EDT

R-I-O-T!!!!!! Come on, someone needs to understand that the only way this is going to work, is to quit being stingy and help fix the economy. As long as they stay greedy everybody suffers. Mad money obviously didn't understand his own problems. This is the WORLD economy, somone screws up expect a domino effect to follow. So if we sneeze, everybody in the world gets the cold. Can't be explained any better.

Adam
Adam - Monday October 06, 2008 08:20PM EDT

Who is the second storied investor that this article refers to? Obviously Buffett is one, but they don't mention another.

you
cotton_panty_sniffer - Monday October 06, 2008 08:22PM EDT

cramer is not qualified to wash my car let alone opine on stocks. he is a WELL DOCUMENTED loser when it comes to making calls. it's bes to fade his messages and spend your time on learning how to make you own decisions.

you
marktaichen - Monday October 06, 2008 08:22PM EDT

storied? cramer? you make me want to stop coming to your website... how much is cramer paying you guys?

you
Jon A - Monday October 06, 2008 08:24PM EDT

It is important to note that Warren Buffett's recent purchases were in preferred stock with good terms, he did not invest in the common stock in those companies....Labeling his views as being opposed to Cramer's based on these purchases is inconguent logic.

you
yushania_anceps - Monday October 06, 2008 08:24PM EDT

While Buffet is not infallible, I would strongly urge no one to remotely consider listening to Cramer over Buffet. In fact Cramer should probably be mostly ignored.

levonholdings
levonholdings - Monday October 06, 2008 08:27PM EDT

Cramer also took responsibility for keeping his listeners in Lehman.

you
silentvow - Monday October 06, 2008 08:28PM EDT

If Buffett is an oracle, then he is the Oracle of Delphi.

you
Jean F - Monday October 06, 2008 08:28PM EDT

I don't think you can compare Cramer to Buffett. Cramer is focusing on selling is show whatever the result is versus Buffett the REAL investor.

brookhilton
brookhilton - Monday October 06, 2008 08:37PM EDT

Please :-)... Buffett vs Crammer... Crammer has ZERO credibility from my perspective...

you
optimumcapital - Monday October 06, 2008 08:37PM EDT

Cramer assured everybody that the bottom has been set on July 15. CNBC should cancel his show. I am sure a lot of people lost big money as a result of his buy, buy, buy and sell, sell, sell. Cramer is a short term trader. He has no clue as to valuations. It is an insult to Buffet to compare his advice to Cramer.

you
geguy1 - Monday October 06, 2008 08:40PM EDT

If Cramer says "get out", it's very likely a great time to buy in. I'll place my money next to Buffett's!

you
ttran1966 - Monday October 06, 2008 08:40PM EDT

How can you compare Cramer to Buffett? Comparing Cramer to Buffett is like comparing a ford Pinto agaist a Cadilac. Just couple of months ago Cramer said to go out and by stock since he called it the bottom.

you
Yahoo! Finance User - Monday October 06, 2008 08:43PM EDT

Cramer said the bottom was July31, buy financials. Today cramer said sell, sell. Buffet never said anything, he just bought. Now, do I follow the the guy who TALKS or the one who ACTs? Would I listen to an ex-hedge fund guy or do I follow a guy whose job is to provide the best returns to his investors? Would Cramer like to reveal is portfolio and his short positions?

John v
John v - Monday October 06, 2008 08:43PM EDT

They both are rich....

you
Yahoo! Finance User - Monday October 06, 2008 08:45PM EDT

Hope SEC + FBI looks into Cramers past and present comments and his stock trades

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