I Think Warren Buffett Would Like this Situation
Wednesday I blogged on the virtues of “benign neglect,” which is my cute way of saying that we should take a long term view of our investments. I used Warren Buffett as an example and closed with some appropriate quotes from him about investing for the long term. Now by definition, good long term opportunities don’t pop up every day, but one did so just this morning so I wanted to share it with you. I have to emphasize, in keeping with my general policy and disclaimer , that this is just an example to illustrate my point, and not an offer or a recommendation to purchase. Just this morning, General Electric announced poor quarterly numbers, and lowered its guidance for fiscal 2008 by a few cents per share. The poor performance was partly the result of some subprime exposure, but according to CEO Jeff Immelt, “We could have done better in several areas.” The stock is being pounded today, especially because as recently as a month ago, Immelt was quite optimistic. Remember a point I’...