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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: TD who wrote (7364)	2/8/1998 1:10:00 PM
From: Sergio R. Mejia	Read Replies (1) \| Respond to of 116752

'What is wise to do in the beginning, fools do in the end' - Warren Buffett A few excerpts from The Toronto Star Getting Technical - By Bill Carrigan February 8, 1998 thestar.com Deflation doesn't seem to be a Buffett concern What about Buffett's 20-year low-inflation, buy-and-hold strategy that many have recently embraced? The answer comes from a Buffett quote, ''What is wise to do in the beginning, fools do in the end.'' Buffett's silver purchase through Berkshire Hathaway Inc. is of great significance. Berkshire took physical possession of the metal. This is dead money; the metal returns no interest or dividends. Buffett must be counting on a long-term capital gain. In other words, Buffett isn't subscribing to the current deflation scare set off by the collapse of Asian markets. If he believed that, he could have bought U.S. treasury bonds, earned some interest and had his purchasing power grow. At the (Toronto Financial) forum, I listened as Jerry White pitched the new Infinity Funds philosophy. They stress that wealth is created through the long-term ownership of a business. You buy and hold financial and consumer stocks just like their hero billionaire Buffett. The problem now is that Buffett changed his style last summer and forget to tell anyone until last week. Buffett's move doesn't necessarily mean we should run out and buy silver stocks. It merely indicates we should rethink our strategy toward the importance of hard assets, which perform well in inflationary times. I believe the January recovery in the metals is the beginning of a new bull cycle and this first up-leg should terminate in a few weeks. A second up-leg should begin in April or May and continue through September. I would consider selling into this strength in the late summer.