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Posted by Don Tiberone on January 23, 2008, 10:12 am
http://articles.moneycentral.msn.com/Investing/CompanyFocus/HowBuffettIsPlayingThisMarket.aspx?page=all
How Buffett is playing this market
The Oracle of Omaha is riding the rails and looking at manufacturers
and global growth. But he's avoiding financial stocks. Here's how you
can play along.
By Michael Brush
As oracles go, Warren Buffett doesn't talk much. The renowned value
investor is famously secretive about his maneuvers.
In a round of December appearances in support of Sen. Hillary Clinton,
for example, Buffett deftly dodged questions about what he'd been
buying as stocks crumbled.
But actions speak louder than words. And Buffett's recent actions
provide four key takeaways for investors:
* In the long run the U.S. economy will be fine, so it's time to
start nibbling on cyclical names that have been hit too hard by fears
of economic Armageddon, like railroad stock BNSF Railway (BNI, news,
msgs).
* Basic manufacturing stocks may be buys here for the same reason.
* Get international exposure to benefit from the weak dollar and
foreign economic growth.
* Avoid the financial sector.
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