Warren Buffet wrote an opinion column in the New York Times. The essential message is: convert cash to US equities, as equities would appreciate from today’s low prices, whereas cash would depreciate due to inflation. He wrote in the paper:
- “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful,”
- “if you wait for the robins, spring will be over.”
- “Today people who hold cash equivalents feel comfortable. … They have opted for a terrible long-term asset, one that pays … nothing and … depreciate in value. … the policies that government will … prove inflationary … accelerate declines in the real value of cash accounts. …Equities will almost certainly outperform cash over the next decade…”
Copyright (c) 2008 by Waiming Mok
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