I’m no financial investment wizard, but I think we all know that when it comes to buying and selling anything, then ideally, you want to buy low and sell high.
Many people don’t even want to talk about buying stocks or investing their money. Either they’re simply unable, or they last their hat and are still bitter. Both are understandable.
In a NYTimes article published this weekend, it is reported that Buffett has been able to quickly steer his company back to profitability while also making some heavy investments. So, as evidence of why you should at least think about buying stocks while the market is low, I submit for your review these words from Warren E. Buffet, arguably America’s smartest investor:
[Buffett] described how he had used the last 18 months to scoop up a string of assets — a buying spree that culminated at the end of last year with the agreement to buy the Burlington Northern Santa Fe Railway, his biggest bet yet.
Mr. Buffett wrote that his company, Berkshire Hathaway, had net income of $8.1 billion last year, or about $5,200 a share, 61 percent higher than in 2008. The company also reported a 19.8 percent rise in book value.
Generally speaking, many stocks may still be near their lowest prices in recent times. If the market recovers in the near future, which both Buffett and others are suggesting, then it might be time to get in on the ground floor while the gettin is good.
Now, I’m not going to sit here and tell you what stocks to invest in. I’m just pointing out that it could be a good time for you to invest in something.
Okay, we’re always telling you how to save money here on Gaucho. And giving you ways to save with all these coupons. But what are you doing with that savings?
Why not put some of that savings into a separate account and use it for investment purposes? Even if you start small — $25 or $50 a month — it will add up over time. The earlier you start, the more gains you’ll be likely to make.
Now, I’m not guaranteeing the market won’t take another dive, or perhaps explode all together. And I’m not advocating you pour all your savings into the stock market right now. But, we know (hope) the market and the economy is going to recover someday, history shows the market generally goes up over time, and we definitely know that investing wisely in stocks can yield big returns in efforts to save money.
Otherwise, the banks and Buffets of the world wouldn’t do it.