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Thread: Who should thoese investors believe, Rogers or Buffet?

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[quote=APAULT,258055]In a recent TV interview Buffet said he will continue as long as he is able to...no doubt some day he will feel he has had enough and we would expect him to be just a shareholder. We should not forget that he has just passed several billion of his wealth to charity, and plans to pass most of the rest to charity on his death.

I would not say a 20% reduction in stockmarket prices is a bursting bubble.  The first condition of a bubble is that the underlyying assets or earning capacity are incapable of sustaining the income yields.  China might have high PER's (I am not sure) but the rate of growth in the economy and real returns to investors is growing fast, so perhaps the high stock prices are justified.

A burst bubble would mean prices fall to 20% rather than by 20%.  What we have seen is a 'correction' as shares might be slightly overvalued and some people would like to lock in profits - exactly like that wise old investor Mr Buffet did!!

Remember, for every seller (who may be considered to lack confidence) there is a buyer who does have confidence.
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