Warren Buffett says we are in a deep recession
that we won't pull out of for a long time.
The Whelanator has a different opinion.
What Buffett is doing, in my humble estimation,
is setting up the market for a buy, and maybe two
or three buys. Buffett is an expert at buying companies
that are undervalued, and then watching them blossom.
He tends not to buy anything when the market is bullish,
and full of enthusiasm.
Lately, the market has been battered, mostly by greedy
CEO's who were fixated on short term profits. Buffett is
a long term player, and only makes a mistake occassionally.
His winners far outnumber his losers, and his Berkshire
Hathaway holders are a happy lot.
I don't know what Buffett has his eye on these days, but
I'd be willing to bet that it has sopmething to do with real
estate and banking, the two industries hurt the most over
the last year.
As if real estate investors and bankers needed any more
headaches, Buffett announces last week that we are in a
deep, deep recession. The only effect this can have on
those industries is to push them lower.
And mark my words, when the price is low enough, Buffett
will swoop in and acquire a couple of companies that are
seriously undervalued.
Then he will announce that we are pulling out of the recession,
and that real estate and banking are making a strong comeback.
And once again he will look like a genius.
And Bershire Hathaway stock will grow and prosper some more.
That's what I think.
Meanwhile, for those of us who aren't Buffett, we have to figure
out how to grow every year too, without all that clout. Because
in business, it's grow or die.
So I'm sticking to my opinion, which is that there is no
recession. If there was was we could just fold all our cards and
go home and watch the financial news, where you can be sure
they will be talking to...The Whelanator.
(Maybe in a few more years!)
From the big saddle,
Jim Whelan
The Chairman of the Board
P.S. One of my clients just called to tell me his sales
are up 67% this month. His campaign started on May 1,
and he couldn't be more pleased. He is reaching what he
calls "high quality buyers" who didn't realize what his
company had to offer. If you want to reach folks who don't
kick the tires, contact us at:
thejamesrwhelanagency.com, or call us at 206 407 3124.
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