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What are the Investment Superstars Doing in this Crisis?

| March 23, 2020
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Investment Insights from the Best in the Game

In 2008, it was Warren Buffett who famously came out and cajoled people to buy stocks that were being offered at fire sale prices.  Many forget that stocks continued to slide for another several months after those words - proving that even the famous Mr. Buffett has no particular insight as to when the market will bottom.  But it is useful to observe what the brightest minds in the investment world are doing. 

Although not exactly the household celebrity Mr. Buffett is, Bill Ackman is certainly one of those brilliant people, wildly successful investors.  He is certainly a celebrity among us investment types.  And he is now echoing those words of Warren Buffett. Read here:  https://finance.yahoo.com/news/bill-ackman-makes-2-5-181343209.html 

Just as when Buffett spoke in 2008, Ackman can't possibly know that stocks will recover tomorrow, or the day after - but he know that stocks are getting cheap, and he knows they will recover.  And it ain't just words when the guy puts $2.5 billion behind his words.  That ain't chump change - even for him.  So if you are toying with the idea of putting the 401k in cash - you might wonder if it is wise to bet against the likes of Bill Ackman.

Meanwhile, what is Warren Buffett himself doing?  I imagine he is still eating steaks, drinking Cherry Coke, and oh - he recently bought a huge stake in Delta Airlines.  Hmm, what should we make of that?   Airline stocks are getting absolutely CRUSHED.  Buy?   Is he crazy?  Or crazy like a fox?  

Both Ackman and Buffett are decidedly thinking LONG TERM with their investments.  They don't know AND DON'T CARE when the market will come back.  They don't need to know where the bottom is, and they don't care what happens to their investments next week.   They just know that a recovery will happen, and they believe that right now, stocks are cheap.  Now, what do you think they would tell people to do with their 401ks and retirement investments?  



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