Monday, May 6, 2013

Warren Buffett: Stocks Will Go 'Far Higher' Over Time

Warren Buffett: Stocks Will Go 'Far Higher' Over Time: "While he has bought bonds in the past under different circumstances, he generally prefers "productive" assets to fixed-income investments.

Buffett also warned that it's "crazy" to get enticed into a risky investment because someone promises you a higher yield. "I can take you to the waterfront and they'll promise you 15 percent," he joked."


  • Buffett revealed that Berkshire has been buying some stocks and companies in the past year. He said Europe "is going to be around" and its economic problems present a buying opportunity.
  • Buffett said he's still bullish on Wells Fargo. Berkshire has bought some additional shares almost every month this year.
  • He wouldn't say why Berkshire recently sold a small chunk of its Moody's stake, but noted the sale price was six times what it had paid.
  • Even though it's been buying newspapers in small and medium-sized cities, Berkshire probably won't be investing in media companies because it is hard to know which ones will be successful in 10 years.
  • He thinks JC Penney has a "very tough" road to recovery after it "alienated a significant portion" of its customers, but has "good management." While he doesn't have an investment in the retailer, he is rooting for it to recover.
  • Buffett said government isn't solely responsible for rising health care costs, "it's the whole system."


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