Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Epic EAS.v (formerly Epic ERB.v and Safari SIR.v) -- Ignore unavailable to you. Want to Upgrade?

To: Praxis who wrote (1475)	2/5/1998 8:03:00 PM
From: CLK	Read Replies (3) \| Respond to of 3335

Off topic: Warren did not buy Silver using "common" sense. He used Uncommon Sense, as he always does. As you recall he bought Wells Fargo when the banks were in the dumps and made a handsome profit. Common sense did not tell him to buy a bank. What he realized was that the banks were is enough trouble so that the Fed would lower interest rates. By doing that they allowed the banks to borrow cheaply, buy bonds at higher rates and see the value of their bond holdings rise as interest rates were taken even lower. This allowed the banks to be saved without the hoopla attendant on how the S and L's had to be saved. That is uncommon sense, far beyond the thinking you usually heard at the time. Now he is buying silver for reasons that go far beyond the obvious low stockpiles . You do not get to be the best investor by doing the obvious for obvious reasons. You get to be the best investor or chess player or poker player or anything like that by seeing further into what is coming than others and being right. Seeing into the future in economic matters is complex, very complex. That is why most people lose at this game. I would say that if W is bullish on silver, you can count on a major move in the metals complex coming for fundamental reasons having to do with macroeconomic forces. One thing is for certain, I would not like to be short silver here.