Monday, October 20, 2008

Buffet & Rockefeller

Interesting little tidbit of financial history from Bill Fleckenstein this week. One of his readers pointed out the parallels between Warren Buffet's editorial on Friday that he was buying American, and this little gem by John Rockefeller in Nov 1929, that he was bullish on the market (a month after the first part of the crash) and supposedly had pegged Standard Oils stock price at $50. You need to read a few pages, beginning with page 135.

Before you get all mad at me, Warren Buffet is the greatest, so there is a pretty good chance he is right. However, we all make mistakes, like Rockefeller did. Just something to ponder.

My opinion: I'm not sure either way, that's why I haven't bought any stock yet.

This is why Google Books is so great by the way. A specific page in a very old book is suddenly significant and we can all read it and reflect on it. Way to go Google!

Thanks to Andrew Miller who forwarded the Buffet editorial to me last week.