Saturday, October 25, 2008

Joe the Plumber vs Warren Buffett: I pick Joe

Warren Buffett -- a mega-billionaire -- says invest in the stock market and pursue your inner greed.

Joe the Plumber -- a new political icon on the 2008 presidential campaign -- says he is not going to put any of his money in the stock market. The economy here and across the globe are hurting. And analysts on TV can agree with each other.

Who is right?

Joe the Plumber.

Buffett is a hypocrite, despite being a very rich one. And it doesn't build my confidence in Sen. Obama that Buffett is one of his close economic advisors. This guy is a big part of the problem that brought economic ruin to this nation.

Yet Buffett refuses to change his tune. He says he is buying into the market, and says the rest of us should follow him. But he does not buy into the market like you and me.

He buys regular common stock like us, but only if he gets a deal from the company he's investing in for getting its priority stock that pays a 10 percent dividend each quarter. We can't do that, because we're not billionaires.

So if the common stock price per share falls and his investment money takes a hit, he makes up that loss with the preferred stock and its 10 percent dividend each quarter. He can't lose.

But the rest of are, in following his advice and those of other so-called experts who tell us to get into the market because stock valuations are so low.

Don't believe them. There still is a 20 percent correction coming in the stock market. It already has corrected itself by an incredible 50 percent. Those valuations are going even lower.

Don't buy now. Wait until February or March 2009 and buy in at the bottom. Along with Joe.

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