Buffett would be “surprised a lot” if stock prices around the world fell 50% in the near future…
And he has levered up on the U.S. Economy - big time.
So if Warren Buffett told you he didn't think the market was going to drop any time soon, would you bet against him?
Let's look at some of the facts:
In November of 1999, moments before the stock market crashed, Buffett said, “you have to be wildly optimistic to believe that corporate profits as a percentage of GDP can, for any sustained period, hold much above 6%...”
He made the case that stocks would ultimately disappoint investors over the coming decade.
And of course we all know how that unfolded.
During the financial crisis of 2008, when investors were in a complete panic, Buffett calmly readied himself to make billions. He invested in Goldman Sachs (NYSE: GS), Bank of America (NYSE: BAC), Dow Chemical (NYSE: DOW) and helped finance private deals such as the Mars and Wrigley merger.
It seems that he was right on all of those calls as well.
So, a few months ago, when Buffett was being interviewed on CNBC, I listened closely to the way he steered us away from fearing another financial crisis.
To be exact, Buffett said that another financial crisis would happen “someday,” but that he didn't think it would happen anytime soon.
In his own words:
“Humans will behave in crazy ways, both on the upside and the downside in the next 50 years...because of something like 2008...they’re a little more careful for a while.”
Yet, he went even further into specifics, telling CNBC commentator Joe Kernen that he would live to see the Dow rise to 100,000: “I won’t, but you will,” said 83-year-old Buffett.
So if he’s this bullish…where is he investing now and how can YOU follow his lead?
Buffett just announced a 41% increase in profits for his billion-dollar company -- the highest increase in profits in the company's history...a stunning new record by any stretch of the imagination.
For investors, there is a lot to learn from the Berkshire portfolio if you’re willing to take a look:
- Investments range from American building and industrials to American technology to American healthcare.
- The top 10 holdings are all American Companies. The largest positions are in Wells Fargo (NYSE: WFC), Coca-Cola (NYSE: KO), and American Express (NYSE: AXP).
- Buffett and team have added American energy companies to their list of investments – from ExxonMobil (NYSE: XOM) to National OilWell Varco (NYSE: NOV) within the last year.
What's Really His Secret?
Buffett’s real secret has always been to “be fearful when others are greedy and greedy when others are fearful.”
And right now -- he’s levered to the tilt on the American Economy, from Coca-Cola to ice-cream to credit cards.
Greedy? I'd certainly say so.
So How About 3 American Companies To Invest In Today?
The Economist compares this disruptive invention to the steam engine and the printing press. Business Insider says it’s “the next trillion dollar industry.” And everyone from BMW, to Nike, to the U.S. Air Force is already using it every day. Watch this shocking video presentation today to discover the garage gadget that’s putting an end to the ‘Made in China’ era…and learn more about the investing strategy we’ve used to double our money on these three U.S. born companies. Click here to watch now!
The Economist compares this disruptive invention to the steam engine and the printing press. Business Insider says it's "the next trillion dollar industry." And everyone from BMW, to Nike, to the U.S. Air Force is already using it every day. Watch The Motley Fool's shocking video presentation today to discover the garage gadget that's putting an end to the Made In China era... and learn the investing strategy we've used to double our money on these 3 stocks. Click here to watch now!
$19 TRILLION INDUSTRY COULD DESTROY INTERNET
It's time to say "goodbye" to your Internet!
One bleeding-edge technology is about to put the World-Wide-Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism... The Economist is calling it "transformative"... But you’ll probably just call it "how I made my millions."
Big money is already on the move. Don't be too late to the party—enter your email address below for 1 stock to own when the web goes dark.