Last week’s big gains was washed away by the stock market’s harsh dip this past Friday (DOW was slipped -261 points).
The market seems so choppy, is it time to packup the wagon and head to the hills?
I’d say no… Why? Because Warren says so!
Warren Buffett exclaimed that he doesn’t believe a double dip scenario is in the work, nor is a great depression. He then goes on to say that all of the 80+ businesses that his company Bershire Hathaway owns are doing better than in 2008, plus he said that some of the companies are even hiring new people on board (albeit at a slow rate).
So why should I believe what Warren Buffett says? Afterall, he continuously states that he can’t predict the future movement of the markets!
Well, based on the biography “The Snowball” written about him, he doesn’t make predictions lightly. Plus, he has empirical evidence (the pretty diversified businesses that his company owns), that gives him first hand information on the state of the economy!
So if Warren said it’ll be okay and we are coming out of the recession, and we are not going into the double dip scenario, I tend to listen with perked up ears! Time will tell, but if I were a betting man, I’d definitely bet on Mr. Buffett above all others!
Afterall, his stock Bershire Hathaway cost over $115,000 for just one share! When Warren took over Bershire Hathaway, it was valued around $19 for one share. So Warren must know a thing or two!