Money Talk

He is optimistic! There is not a single person who will not want to hear what Warren Buffett has to say, leave alone concur with him. In his annual meeting yesterday he has mentioned that his firm, Berkshire Hathway is itchingly wanting to buy $5-20 billion businesses with the horde of more than $40 billion they have in cash or equivalents. During the 2009 stockmarket crash aftermath he had said he is bullish about US. Yesterday about 2 years later and the Dow hitting the highest in 2 years, he says he is optimistic about US economy. I wonder how many would dare to differ. Here is a man who has seen it all and is down- to-earth and the only true doyen of investments. His vision is so clear and his view of the horizon still tells him that US has the unsurpassed human capital of ideas and an environment to make the ideas blossom into capital and cash flow. I could not agree more. What we as a people need is an ounce more of patience! Weeding out and skimming the...

What a major revolt in the middle-east for more than a month now! Yet the stock market did not react till yesterday. We are over 100 points down today. Will it go down further? I think it has many reasons to go for a 5-10% correction. Oil wells in Libya are going to hibernate, uncertainty in Saudi Arabia which has a fifth of all oil reserves is going to weigh heavily, scandals in India, Japan's woes, China and its own social problems raising its ugly head when gets a chance, and the list goes on. But one of the more pressing reasons would be the employment rates in US. No signs of getting better. House prices are predicted to go down another 10-25% on the average, and there are analysts on CNBC who are saying that the housing bottom is a bath-tub shaped recovery and can last till late 2012 and early 2013. If you can see that far, we may not have gone into this recession in the first place. Bottomline, we need higher employment rates. No one is able to predict when that will happen....

Quite a climb! Don't you agree. Dow Jones climbed to its highest since its last pre-great recession high in late 2008. That is phenomenal. If only we knew what will two plus years will bring our way, we could all have been a millionaire had we invested about $250k during the dip. How dare can you ever do that. Not me atleast. But here's the thing. We are happy when the market climbs - its a little late because its after the fact and then we want to get into the market, when actually the best profits have already been made. We don't mind the crumbs when the risks are thought to be minimal. Wealth is made when the risk is the highest. We are wary because the risk can wipe your money as well. Is it any wonder thats why its called risk. It takes a long time for ordinary people to understand and ingest this concept of a healthy risk tolerance. Too long that it is sometimes too late. But I am confident, there are some great stories of profit prospects in growth and income sto...