Warren Buffett's Recession Investment Tips (VIDEO)

In an interview this week with Good Morning America Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, said that Americans had been on "a binge" prior to the recession. The Oracle of Omaha also gave some broad, but characteristically wise, advice for investing in this new era.

For one, Buffett said, debt can be a killer:

"The U.S. public as a whole has gotten into problems from leverage, financial institutions have gotten into problems through leverage," he said. "A long, long time ago a friend said to me about leverage, 'If you're smart you don't need it, and if you're dumb, you got no business using it.'"

For more of Warren Buffett's investment tips, WATCH:

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Comments

[dadw5boys]

Do not belive anything the New Papers print about a stock. Reporters are for sale and they will write what they are told too as news.

Do not invest if you can't afford to lose it all.

Invest in yourself first !!!!!

[noneIn2008]

Read up on "pump and dump". Invest at your own risk.

[regellner]

Many of our woes come from the self-destructive habits of our corporations.

Following are a few thoughts on this:

http://www.examiner.com/x-11326-Liberal-Examiner~y2009m7d10-AIG-bonus-payments-create-selfdestructive-atmosphere


Raymond Gellner – National Liberal Examiner at Examiner.com
http://www.examiner.com/x-11326-Liberal-Examiner
__________­__________­__________­__________­__________­________

[Tyler-Durden]

he may be a nice guy, but he's still "in it" for the money. he's not concerned with helping the gen pop, he's interested in making money for himself. otherwise a guy with such influence would be doing more to stop injustices in the financial upper echelons. same with Gates. they're both loaded and they seem like they want to help, but are they? i don't see them helping us as a nation.

[JuliusSeizure]

They've given away more wealth to fight causes worthy to them than probably the entire Wall Street establishment combined. Do some research before posting. In fact Buffet has given away most of his wealth to the Bill and Melinda Gates Foundation. Where have you been or do you just like spewing BS from your pulpit? I think causes like fighting malaria in Africa, AIDS in India etc. that Gates et al. take on are more worthy than trying to instill ethics in the financial upper echelons as you call them. Ethics is innate, not acquired and can not be taught in my opinion. You can however force it by strict regulation and penalties but that wouldn't require Buffet's involvement.

[speedingpullet]

Indeed, when Buffet made the decision to donate his money to the Bill and Melinda Gates Foundation - he bequeathed about 20 million each to his heirs, and told them that if it wasn't enough for them, then they'd have to go out and get a job to make more ;-)
Tough love you can believe in.

[miriamfl]

Couldn''t have said it better. Thank you.

[hardrain77]

Actually a lot of the money that Buffet and the Gates "give away" is actually very politically motivated.

http://www.latimes.com/news/nationworld/nation/la-na-gatesx07jan07,0,6827615.story

"The Gates Foundation has poured $218 million into polio and measles immunization and research worldwide, including in the Niger Delta. At the same time that the foundation is funding inoculations to protect health, The Times found, it has invested $423 million in Eni, Royal Dutch Shell, Exxon Mobil Corp., Chevron Corp. and Total of France — the companies responsible for most of the flares blanketing the delta with pollution, beyond anything permitted in the United States or Europe."

They make it sound all noble that they're going to immunize and save people in Africa, but in actuality it's usually a bait and switch to get multinationals in these countries to raid them. And I haven't even gotten into the sterilization and eugenics parts of it.

Super wealthy people like Buffet and Gates are big time corporatists and love the Keynesian ideas of bailouts and phony stimulus packages.

[research]

Wow! He seems like one of the good guys, and he has money!

http://en.wikipedia.org/wiki/Warren_Buffett

[OutsourcedAgain]

Warren is a genius. But that piece was nothing but fluff.

[shanmerc]

i'm sorry. was that a portion of the clip or the whole thing?? everything moved so fast. warren effing buffett! you want to understand what he thinks!! who can get that in a 1 min clip that covered 6 topics! god i hate network news!!

[GayGrandpa]

Way to go to, supporting the President! Thanks Warren. Now I hope the Republicans will get the idea!

[prettyinpink]

Of course he supports the pres.

He will pay more in taxes but will another $3000 a year in energy cost matter?

He wants "free" health care for all but will he wait in line or be forced into a "network"?

He thinks global warming should be dealt with but will he give up his Lear?

I think the proper term is limosine liberal. They want to tell you how to live your life, but their life-well that is another matter. With his money if it gets too bad here he can just move to another country. He can go elsewhere for healthcare.

[speedingpullet]

LOL - Buffet is about as far way from a limosine liberal as it gets. The guy still lives in Nebraska and drives himslef around a 10-year old car. He goes for lunch every day at the same diner that he's been to for decades, and used to live in the same house as him mom.
The reason he's a rich as he is is because he's always played it safe and long term, and doesn't give two hoots about his 'status'. We need more people in power like him.

Personally I'd rather have him in charge of he economy than any number of Giethenrs and Bernankes,
Apparently, the Prez asked him to take on a position at the WH, and Buffet politely declined.

He's not always right, but stocks in Berkshire Hathaway are worth 10's of thousands per share, because in the long run, he's more right than wrong.

[anthonyve]

I can't let your nonsense comments about health care pass unchallenged. With the proposed systtem, you would only wait in line if you can't afford health cover and are totally reliant on the public system. Otherwise you will have the choice you have now.
This is how it's worked in Australia for decades. Here, even if you don't have a cent to your name you can go to a public hospital and if you have cancer you get the treatment you need, all of it, free. Sure you might have to wait for a while, but it sure beats dying or going bankrupt funding life dependent treatments.
A family healthcare package here, for about USD 250/month buys you top cover with total choice including dental, optometrist and various alternative therapies.
And, yet again, let me remind you that after many years of this and other, what you folk like to call "Socialist" policies, we in Australia have more millionaires per capita than does the USA.
Wake up people. Stop listening to corporate sponsored rubish and think for yourselves.

[miriamfl]

I know hardworking people that would not mind standing in line or waiting to see a doctor if they knew once they did it was not going to bankrupt them. As far as waiting in line or months for procedures that is a joke and scare tactics the repubs like to throw around.

[HighPlainsJoker]

"waiting in line", really implies that the service is popular. It will save lives, and be good for American workers, and corporations which will finally have a fair competitive situation with the countries that provide health care through the government. I live in Germany. The health care is much, much better than in America, and costs much, much less. Fools don't know what you are talking about. The objective is to lower health care costs that have been inflated by the insurance and pharma companies. If they are so good, as Obama says, they should have no concern for the competition. They may have to stop their cartel practices.

[Tom Fennell]

He does have a jet. He himself dubbed it "The Indefensible."

And he will happily play more taxes to offset the carbon effect.

BTW his house is a very modest mid-town Omaha thing, right on a busy street, just a few blocks down from my house.

He'll be happy that instead of him getting superb healthcare and others forced to wait in line (as the system is now - do you know it can take up to a year to see an autism specialist for a small child), that everyone will get healthcare and he will continue to get superb healthcare, even if he has to pay an income tax surcharge.

Government control will mean less risky high cost procedures of questionable value performed only to line the pockets of the medical profession (see football field size "proton accelerators" being built now for prostate cancer treatments of questionable value).

[believethelie]

Clearly this blog is filled with people who do not know much about Warren Buffet. but that doesnt seem to stop them from second guessing the man....

[JustLucky]

I haven't read through it yet, but, from other discussions, I know exactly what you mean. The Warren Buffett many of us are quite familiar with bares little resemblance to the strange character some project onto him.

[stupid electrician]

Think he pays his fair share in taxes or is like the rest and has off shore accounts to protect himself I say has off shore accounts.

[miriamfl]

You don't give me the impression you know much about Mr. Buffet. He is the first to tell everyone that the rich do not pay enough in taxes. They have too many loop holes and he admits he pays less than his employees.

[Fremon]

THANK YOU FOR BRINING THIS UP. BUFFETT HAS REPEADLY STATED THAT HE PROPORTIONALLY PAYS LESS THAN HIS SECRETARY. DUH, WHAT DOES IT TAKE TO WAKE THE REPUBLICAN FOOLS UP?????????????

[3Dubyadot]

Ah, let's see , Billionaire or stupid electrician, I might be wrong here but i'm going billionaire. Yeah, I will pay more attention to Buffet on this one.

[miriamfl]

I put the electrician up there with Joe the plumber (who really isn't a plumber)

[adamnb]

More unsubstantiated bs from the lunatic right.

[stupid electrician]

Please this is the guy that is giving Bama advice about our auto industry and what should be built then goes and invests in a Chinese company called BYD that is building all electric cars. What a hyp

[3Dubyadot]

Note to Obama: "your gatting your financial advice from the wrong guy ".

[adamnb]

Isn't it true that a major US car company is contracting with BYD to build batteries for its electric cars?

[Enid]

My grandfather grave me the same advice over fifty years ago.
I'm so lucky and have no debt, just premiums and taxes.

[aramos]

Didn't he also say we need JOBS, JOBS and more JOBS! Obama are you listening?

ITS THE ECONOMY STUPID!

Pro growth policies not GO BROKE POLICIES!

[BPCentrisAmerican]

Didn't we have pro-growth under Clinton, why did W. undue everything Clinton accomplished. Clinton was handed a mess from the previous 2 Republican presidents. In my own state Republicans ball it up leave a big deficit, get voted out, than a Democrat has to come in an fix it or the state loses it's bond rating, the Democrat is called a tax and spend liberal and they get voted out, than a Republican gets back in and increases the debt again, and so it goes.

[Alann]

You have hit the proverbial nail squarely on the head.

Republicans routinely castigate Democrats for doing the very things necessary to undo the mess the Republicans make for the unwealthy, and since the American people are notoriously impatient and short-sighted, vote out Democrats when they can't fix things immediately, putting Republicans back in to continue their "pigs at the public trough" policies.

It's a death spiral that we can't seem to break.

[woundedduck]

First, get a million dollars...

[DestinationsUnknown]

I am sure the country first people know better

what does buffett know?