By Ben Winck
Some prominent investors (click here) using media platforms to warn of a stock market crash are doing so to pad their short positions, President Donald Trump alleged in a Wednesday tweet.
"When the so-called 'rich guys' speak negatively about the market, you must always remember that some are betting big against it, and make a lot of money if it goes down," the president wrote. "Then they go positive, get big publicity, and make it going up."
He continued: "They get you both ways. Barely legal?"...
Let's see what Warren Buffet has to say. Warren doesn't tweet that I know of. Warren makes purchases of stock and makes investments the old fashioned way, based on company GDP. I betcha we can find Warren's pearls of wisdom that Trump was talking about.
Buffett has shared plenty of tips during past downturns. They include acting boldly when others are scared, capitalizing on cheaper stock prices, and not waiting too long to buy or trying to time the market. He also warned against panic selling and betting against America at Berkshire's recent shareholder meeting.
"If you owned the businesses you liked prior to the virus arriving, it changed prices, but nobody's forcing you to sell."
"Investors and managers are in a game that is heavily stacked in their favor. Charlie and I believe it's a terrible mistake to try to dance in and out of it based upon the turn of tarot cards, the predictions of "experts," or the ebb and flow of business activity. The risks of being out of the game are huge compared to the risks of being in it."
"Bad news is an investor's best friend. It lets you buy a slice of America's future at a marked-down price."
"Like Cinderella at the ball, you must heed one warning or everything will turn into pumpkins and mice: Mr. Market is there to serve you, not to guide you."
"When hamburgers go down in price, we sing the "Hallelujah Chorus" in the Buffett household. When hamburgers go up, we weep."
"If you wait for the robins, spring will be over."
"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
"Never bet against America. That is as true today as it was in 1789, during the Civil War, and in the depths of the Depression."
Well, what do you think? Are those words of wisdom barely legal? It isn't as though there wasn't a virus. Honestly, who else is he going to blame?
