Why Warren Buffett’s 2008 message to American investors was timed perfectly: Morning Brief

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Why Warren Buffett’s 2008 message to American investors was timed perfectly: Morning Brief
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Why Warren Buffett’s 2008 message to American investors was timed perfectly via SamRo

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Now, this wasn’t a letter to Berkshire Hathaway shareholders and it wasn’t an appearance before a business channel’s business audience. It was a message to America, reminding Americans that the country has had a long history of what seemed to be insurmountable crises but yet managed to come back. Economic activity has always returned and the stock market has always rebounded.

Ultimately, his message was that the long-term outlook for the U.S. economy was still intact and the crisis made stocks cheaper. “Will stocks decline in the coming days, weeks and months? This is the wrong question to ask... primarily because it is entirely unanswerable,” he said. “Instead, intelligent investing has to be based — as always — on the relationship between price and value.”"Anything can happen to stock prices tomorrow. Occasionally, there will be major drops in the market, perhaps of 50% magnitude or even greater,” Buffett said last month.

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