Stocks open higher

Stocks open higher

money.cnn.com

The Nasdaq gained and the broader market struggled at Wednesday's open as investors welcomed Warren Buffett's $5 billion investment in Goldman Sachs, but remained wary as the debate over a bank bailout plan continues.

(visit the link for the full news article)

Could someone explain the point of Mr. Buffetts investment? Does he have some sort of inside info on something perhaps? I dont know why anyone, rich or poor, would want to invest in anything right now...

money.cnn.com
(visit the link for the full news article)

[edit on 24-9-2008 by ben91069]
(wrong information - deleted)

[edit on 24-9-2008 by ben91069]

I'm sorry, but so far all I've seen in today's stock market is stagnation. It hasn't been up or down more than 50 points in the first couple of hours of trading and seems to just be hovering around. Wall Street is clearly waiting for something, some announcement or some sort of news, before anyone commits to any signifigant buying or selling today. Notice how puny the trade volumes have been this week after a very active week last week. They're waiting and watching. (although last week's high volumes were also partly due to a lot of moves by short sellers to get in before the temporary ban.)

Warren Buffets mantra has always been "When people get greedy get scared, when people get scared get greedy".

Goldman Sachs has OBVIOUSLY got quite a bit of financial potential encased within. Buffet is no idiot and recognizes this. For pennies on the dollar, he is making a smart investment.

Banks will never COMPLETELY fail, and it's a 50/50 shot that Goldman will lead the way as the premier banking "Fort Knox", for lack of a better term. IMHO, Goldman will be the company that is the "Gold" behind the currency in the future. With this in mind, he stands to not ONLY further his own financial empire, but to also be in a unique opportunity to take a stake in America's backbone; it's financial wheel. If what comes to pass is even remotely similar to: "All your money is backed by Goldman", think of the possibilities.


AB1