
^ +1,797.00 +1.10% May 3rd 2013
Transcript Below:
Becky – CNBC: I know that you’re not somebody who looks at the market averages on a daily basis or cares about any of these things. But when you start seeing the trend that we’ve been seeing, which is almost a straight march up, it seems like we’re hitting new highs almost every day and that’s the type of thing that catches main street’s attention. You’ve got a lot of individual investors who are sitting around wondering if they’ve missed everything. If they should get back in, if it’s too late, if they’ve missed the train.
What would you tell those people who are sitting at home wondering what the Oracle of Omaha is thinking about?
Warren Buffet: Well, they should pay more attention to the milestones on the down side. That’s when the Stocks are getting cheaper. That’s when Stocks are going onsale, but people do get excited when Stocks go to new highs. I can remember it was a big event when the dow crossed 100! I surely remember well when it hit 1,000, that was a magic number. Probably in my lifetime and certainly in your lifetime you will see markets go far higher than this. I mean the retention of earnings by American industry, the growth of the country will cause stocks to go higher over time.
We’re not getting everything out of stocks in terms of the dividends they pay compared to the earnings retention that is building up. It’s exactly like if you have a savings account ,and you only took out part of your interest earned, your savings account would grow.
So I don’t get too concerned about a given the level. You will see numbers a lot higher than this in your lifetime.
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