The Stock Market Is Down, But The Smart Money Is Buying
Submitted by Randy on Sat, 10/04/2008 - 19:42.
So far this year, the major indices are all down by over 20%. It’s gotten so bad that a lot of us don’t even open up our retirement statements when they arrive in the mail. So what’s the smart money doing?
They’re buying up beaten down stocks.
Following the old adage of “Buy Low and Sell High”, Warren Buffett’s Berkshire Hathaway has recently taken big stakes in Goldman Sachs (GS) and General Electric (GE); and recently agreed to buy Constellation Energy at a fraction of its recent high of over $100 per share.
And he’s not the only one. Anthony Bolton, described by some as the “British Buffett”, recently purchased shares for the first time in two years because he believes that valuations are among the cheapest he’s seen in years.
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