"Buffett Sees Danger In Stock Market" -- Reuters
[The Reuters article copied in the prior post tries to make Buffett sound much more alarmist than he actually was. In fact, Buffett deftly deflected all of Koppel's invitations to cry "Wolf!", as would be expected of a great statesman of finance.
porx recollection is that, in response to Koppel's question about what a 25-yr old making $20,000 to $30,000 per year should do, Buffett mentioned an Index fund, as one possibility. However, he was practically muffling the answer into his jacket sleeve, such was his lack of real enthusiasm. Perhaps he viewed it as porc does -- the lesser evil, when compared to timing.
Yet, Buffett was quite emphatic on one point -- don't make any purchases on borrowed money. Not only does this mean not using margin, but, as he mentioned earlier in the interview, it means paying off credit card debts before committing any funds in the Market, as there is no realistic possibility of earning more in equities, at these inflated prices, as the 15% or more that credit cards charge annually.]
porc --''''>
|
