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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

Amber
Amber - Monday October 06, 2008 08:48PM EDT

In actuallity neither one of these greed mongers can be trusted. Which one predicted the end of central banks as we know it? Both are gambling as we are, albeit with the help of an overpaid staff of so called "market specialists". Truth is, no one can say with any certainty where our debt based market and fiat currency are headed besause we are in un chartered waters... got gold?

__A_YAHOO_USER__
__A_YAHOO_USER__ - Monday October 06, 2008 08:48PM EDT

Buffet is a man who know best the time to Invest.He like quality,class which people in general like to take,taste .desire and need for all occassion. Like GE ,Goldman Sachs and Constellation......The three companies has one basic in common,All of them have all basic in common. All are under Value which everybody knows the reason. Will that three companies will last for another 10 or more...The answer is yes...Are ordinary people attached to both companies yes Constellation and GE..Are the names of three compnies famous for most of the people...the answer is yes...Whatever occassion people lives attached to the three companies...WILL IT SURVIVE IN THE CRISIS...HISTORY IS THE EVIDENCE....

Yahoo! Finance User
Yahoo! Finance User - Monday October 06, 2008 08:55PM EDT

Cramer's advice is best ignored. His "best ideas for 2008" included Sears Holdings, Goldman Sachs, and NYX. But yet the other day he claimed he "called" the current financial crisis last year. He flip flops like a fish on the dock. He may have "2000 stocks in his head", but he doesn't have a real understanding of any of them.

Jim
Jim - Monday October 06, 2008 08:56PM EDT

Cramer is awesome. Follow his advise if you need the money in the next five years

Joseph
Joseph - Monday October 06, 2008 08:56PM EDT

Get Real!!!! Cramer vs Buffett. Who has MORE MONEY!!!!

Yahoo! Finance User
Yahoo! Finance User - Monday October 06, 2008 08:57PM EDT

You can't go wrong with Buffet's choice of Constellation energy's preferred stock The Preferred A CEG-A or CEG-PA depending on the financial site you use. Once the merger is official the stock goes to face value and usually trades at that $25 face value towards the month leading up to dividend date. It pays 10+% at these prices today and 8.75% close to it;'s face value +25% stock price growth potential.

Tim
Tim - Monday October 06, 2008 08:58PM EDT

Buffett is saying buy, Cramer, for the first time, is making sense. If you need money in the next five years, go to cash, if not, don't. Who are those morons on the left side of the screen????

Dave
Dave - Monday October 06, 2008 09:03PM EDT

I remember when the dow breached 14,000 in 2007 and Cramer said by 2008 it would be almost at 15,000. - I stopped watching after that point. Buffet doesn't really say "buy" to anyone other than the company he wants. He just unloads billions into extremely solid investments and gets rich off of the dividends and when the stock goes up, everyone else looks dumb but him.

- Monday October 06, 2008 09:06PM EDT

Cramer knows he has ruined his credibility by calling the "bottom" and keeping people in Lehman. His only way to save his TV show and book deals is to make an outrageous comment like "sell, sell, sell" on national TV. If he is right it could right all his wrongs in the investing herds eyes, and if he is wrong, he will continue to go down in flames. Long live Buffett!

jgon2
jgon2 - Monday October 06, 2008 09:06PM EDT

When Cramer promotes a stock it allways shows up on the wire that day with a gain. what the hell good is that. He sees a stock up for the day and tries to sell to the public. Just like the rest of the pundits, full of s---.

jgon2
jgon2 - Monday October 06, 2008 09:06PM EDT

When Cramer promotes a stock it allways shows up on the wire that day with a gain. what the hell good is that. He sees a stock up for the day and tries to sell to the public. Just like the rest of the pundits, full of s---.

Yahoo! Finance User
Yahoo! Finance User - Monday October 06, 2008 09:06PM EDT

I think Cremers investment philosophy would be buy at low and then sell at even lower

- Monday October 06, 2008 09:07PM EDT

BUY!!!

Yahoo! Finance User
Yahoo! Finance User - Monday October 06, 2008 09:08PM EDT

I think Cremers investment philosophy would be buy at low and then sell at even lower

jgon2
jgon2 - Monday October 06, 2008 09:13PM EDT

put your money in cash and after 5 yrs you will have missed out on probably the best gain you will ever see

Yahoo! Finance User
Yahoo! Finance User - Monday October 06, 2008 09:13PM EDT

Cramer is a "CLOWN"!! I watch him for laughs,nothing else.I get a kick out of these jokers who call in and tell him how great he is.What a bunch of "IDIOTS"!!

w w
w w - Monday October 06, 2008 09:18PM EDT

Comparing Cramer's strategy to Buffet's is insane!!!! Its apples and oranges … Buffet deal allowed him to purchased perpetual preferred stock, the common Joe (who Cramer is trying to help) would never get the deal that he got. Sound’s to me that there are a lot of want-a-bees here that think their smarter than Cramer. When one of you get your own TV show and have hundreds of thousands of people willing to pay for your financial advise then you can open your mouth, till then BOOOO YAAAAAAA to Ya!!

Yahoo! Finance User
Yahoo! Finance User - Monday October 06, 2008 09:22PM EDT

If I remember correctly, in 2002, the day the MARKET BOTTOMED, BUFFETT was asked which stocks he would be buying and HE SAID "He didnt find anything of value". So Buffett can be wrong too. Besides, Buffett returns are so good because he probably gets sweetheart deals like he got from GS and GE with 10% guaranteed dividend. So before we all start worshipping Buffett and trashing Cramer - lets remember, nobody is infallible. According to morningstar, BRK.A 's total return for last 5 years was 11.5 on avg - good but not earth-shattering. - otherwise Berkshire would be

w w
w w - Monday October 06, 2008 09:24PM EDT

Comparing Cramer's strategy to Buffet's is insane!!!! Its apples and oranges … Buffet deal allowed him to purchased perpetual preferred stock, the common Joe (who Cramer is trying to help) would never get the deal that he got. Sound’s to me that there are a lot of want-a-bees here that think their smarter than Cramer. When one of you get your own TV show and have hundreds of thousands of people willing to pay for your financial advise then you can open your mouth, till then BOOOO YAAAAAAA to Ya!!

jayy
jayy - Monday October 06, 2008 09:25PM EDT

krammer has two digit IQ.

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