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Bear Market Stock Buying – Would you do it?

19 October 2008 4,690 views No Comment

Buying stock in the current bear market takes some curage. But it’s what Warren Buffet would do and as he always says “Be afraid when others are greedy and greedy when others are fearfull”

As he points out in his editorial of last week at the NY times Warren Buffet indicates that bad news is an investers friend as those are just the times to pick up stock that in the long run will perform. But you have to have a long term vision as it’s not likely that a stock you bought today will be worth a lot more next week or month.

But having cash is a bad investment as Warren Buffet points out as it devaluates faster then stock in the long run.

What to look for in bear market stocks that offer opportunity?

Buy stock of a company that does well, the stock price will follow it again.

Sounds obvious but that is the basic rule. Things to look for are strong management, no or limited debt, strong fundementals and a company that is commited to build shareholders value. The defensive kind of stocks.

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