8/15/10

Crisis or opportunity.

U.S. financial crisis is making investors in heavy damage.
And many people are either "escape death" or withdrawn from the market each row However, it seems Wall Rent Buffett Posted busy investing in the company of several unique is.  Goldman Sag and GE. He paid 8,000 million dollars combined. Money from more than 30,000 million with the hands. For Buffett and the post is "great" that he will invest in shares of the business the best prices are very The following question is to Rent Water Buffett posted a view, or how the investment strategy of crisis. And here is his idea was presented by Alice Schroeder author of Snowball is a story of the life history of War Direct Buffett posted that are selling well at this time.
Buffett Posted think.
1) during the crisis. If you have cash And courageous enough to invest. This is heaven and is unable to evaluate. What I want is to explain more. Most people may be in cash. But in times of crisis. These people often do not dare invest because they often fear that the investment will be lost to the crisis. Buffett said that post. People in times of fear. We must try to bold or "greed" will dare to invest in the event. "Worst" and this often becomes the best opportunity to make money if we can be substantial.
2) In order to properly invest it. Buffett said that post. Do not invest in what you do not understand. This means that In time of crisis. Share price falls a lot does not mean that we will buy just because prices go down it. But to buy because we see that we know and understand the business better. And we know that price is lower than the value it very much. What I want is to be more. During the crisis Hi Tech Shares during the 2000 High Tech stock prices fall, many multiple falls 80-90%, but Buffett did not post it to buy investments. Because he does not understand them enough business. And I have to say that Buffett was not posted thought to play Hi Tech Shares. Because most partners agreed to it. Not had a chance to come back again.
3) Do not try to get a knife that is falling down until you understand and manage risk. This is a story posted Buffett always careful. History of Buffett posted it. Almost every time they're investing in stocks "crisis" is also a chance to make huge profits, he looks for "net" support if what he always thought it wrong. One strategy he uses regularly is. Rather than to buy shares directly. He always preferred to offer the right company promises to pay dividends indeed. For example, in the case of Goldman Sa c and GE dividend 10% per year, and he has a right to get the money back before common shareholders in the company's bankruptcy case. But more important is that he will ask option or Warrant to purchase shares posted in the future at the price set This will make huge profits if the company he has survived the crisis and recovery possible. In the case of Goldman Sa and at GE. He posted a Warrant to purchase shares of preferred stock equal to the right within five years as its market price at the moment he decided to invest.
Statistical investment in time "critical" by Buffett's post is no doubt that the need is great and legendary. In this we would need to see each other that they are finished or not, however, the response from the stock market seems to be in a positive way since his visit and invest. But our point is. Lapse of our home market today is a crisis or opportunity for us to go make money?
View and analysis. I see that the condition of our economy and financial markets really Not be affected because we received a lesson from the crisis of 1997 to lead the company doing business in Thailand are very careful. Including financial institutions. I do not have to loan out with the simple past. This allows companies to borrow money. Contributed much less to the financial position of most companies is quite strong, so its impact on the Thai crisis really direct. So is the stock of foreign investors, are selling shares to bring money back to self-care in other countries a result, the share price gradually reduced by the performance of listed companies have good course performance. In the future, may be regression to some, but still not much compared with the reduction. Down of stock prices, especially listed companies with the most dependable use Cash in the main, so my conclusion is. This would be an opportunity for us to acquire investment.
Investment in "crisis" in the course of this risk, especially if the crisis spread to the United States and the worldwide economic slump, however, if we stick to the third verse of the Buffett posted above. I think it likely that we will get good returns. Discuss this I try to think back over approximately 12 years, I invested a full hundred percent and collect detailed information I found that I was passing crisis, came the second time after a year in 1997 and in 2000 both the index market, agreed most that conditions in which more than 40% now But I have survived so I do not see why this time I would not have survived, especially when considering that in the previous two times. Economic reality much worse than today, so for investors who do not already have invested hundred percent. And to invest in this period is considered an advantage to not release more "golden opportunity" to go off.