Flower power
Look at me, I’m beautiful! Each and every one of those thousands of bright, beautiful, gorgeous flowers seem to be saying. We don’t mind that shameless declaration don’t we. And we don’t mind sitting on our butt for 3 hours to go see them too. Over the weekend we went to the Floriade– annual Spring flower display. So you can say my weekend was in “don’t care” mode even when the markets have been falling like dead flies. I heard gold plunged $100 in one day (didn’t get to capture the news) but this Monday’s last session it fell $45 so I guess it can happen. And the stock market was 300 points down or something.
How about you? How was your weekend? Were you watching the markets and nervous about what’s going to happen? Were you furiously thinking of how to make back the loss if you had a position?
You poor thing. All while I am enjoying the company of these beautiful beautiful beautiful flowers. You were panicking! Come on, it was the weekend, next time don’t let it go to waste! Weekends serve as our “recovery” period. Get some rest, have some fun, markets are close so no use worrying, you don’t panic over the markets. As we opened the week, US market was back up nearly 300 points. What’s going on???
I am beautiful!
Here’s why – hope springs external.
1. While you are panicking, there are others excited about the fall in prices and wanting to go back in the market and buy cheap. Warren Buffett is one of them, now he is the most successful investor of the whole wide world so what he does is not necessarily what everybody should be doing (because he knows what he is doing) but you can find out more if you have something in common with him to do what he does. What he does is invest in companies as a business he says. He likes it when the markets go down because he can afford more shares of the companies, which increases his ownership and share of the profits. The companies that he buys are not any company though, so do your homework and check out what and why. Alright, I will post about it.
During the depths of the global financial crisis when there was no solution (e.g. stimulus programs on sight), he bought shares of Goldman Sachs, today, he did something very rare – he bought back shares of his own company Berkshire Hathaway. What does that tell you? He’s got confidence on his own company making more profits (and buying shares of it back keeps the profits in the company).
“First, the company has available funds — cash plus sensible borrowing capacity — beyond the near-term needs of the business and, second, finds its stock selling in the market below its intrinsic value, conservatively calculated,” he wrote.
He is very conservative person, yet at these times, he does something bold! That has to get the rest of us thinking!
Here’s the news article:
http://www.bloomberg.com/news/2011-09-26/berkshire-to-repurchase-shares-saying-stock-is-undervalued.html
The Europe Debt issue is also in the play, but will write about that later. Time to cook breakfast. Take care.
Bold and beautiful
