Warren Buffett Says Now is Time to Buy US Stocks

In an opinion column in yesterday's New York Times, Warren Buffett acknowledged that we are in the midst of frightening economic times. He expects unemployment to rise and general business productivity to slow. Basically, Buffett is expecting the same recession that others are bracing for and he understands its implications from an investment standpoint.

And in contrast to popular opinion, Buffett is now actively buying American stocks with his personal accounts. He's careful to note that these are not investments he's making with Berkshire Hathaway, his multi-billion dollar international conglomerate. But any investments that Buffett is making with his personal wealth should be considered at least "noteworthy" to average investors.

Buffett sums up his buying mantra in a very simple but profound mantra: "Be fearful when others are greedy, and be greedy when others are fearful." And with fear being the dominant force driving the recent stock market fluctuations, it would seem that now would be a great time to be greedy in Buffett's system. Again, Buffett readily acknowledges that the short-term outlook for investors is pretty bleak. But his point centers around the fact that now is a great time to get a bargain price on the future of the American economy.

Buffett points out that, while he can't say what will happen with the economy over the next year, "what is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over."