Friday, April 29, 2011

Learn From Buffett


So I see that silver hit $50 an ounce recently.

A lot of sages have been vindicated on that one - notably Jim Rogers who's long been saying that silver (and palladium) had better ROI prospects than gold.

Check out that chart. Do you see that low in the mid-late 90s?

Around $5 an ounce is where Warren Buffet dumped a ginormous silver investment. That was when breakthroughs in digital photography destroyed the old camera technology which had constituted huge industrial demand for silver. Recall Eastman Kodak's stock (a Dow Jones Industrial component) got absolutely crushed.

So what else is that *sage* doing now that we can learn from?

I say take a good look at Wells Fargo. Buffett, while a long-time investor, arrogantly added to this investment in the high 20s.

To be clear for a few Morons....I'm saying to short the stock just as I am via long-term puts. It's probably time for me to buy some more now that I think of it. (I just did today actually.)

3 comments:

paul mitchell said...

Since The Bernanke says there will be no QE3, I think running from anything other than food investments is going to be the wisest move. And by food investments, I mean plant a danged garden, it is about to get bad.

CaptiousNut said...

Hah!

Regardless of what they might say...

They'll be a QE10 before it's all said and done.

I tried tomatoes 2 years ago and it was a PIA and a disaster (5 tomatoes?). My wife is trying to get me to plant pumpkins this year but I'm weaseling out of it.

paul mitchell said...

Cap'n, the stuff that I have read and seen the last two weeks all says that if they do not keep plowing money into the market, we're looking at Dow 3000 in no time flat. About the only thing that I can plant right now, since the ground is saturated, is RICE!!! I hate rice.