CW Blogcast 41 - Why Warren Buffett makes money in stocks and you don't.
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Description
Warren Buffett, the Sage of Omaha, seems like a kindly old gentleman when you see him on television but never forget the man got to where he is in life with an eagle eye constantly cocked for opportunity. Recent events in the stock market are a good lesson for why we say the average investor should run from Wall Street investments with all due speed. Buffett, banks, and other elite investors are using the bodies of the middle class American to climb to even more wealth. How does it work? Here’s one example. Due to the cycle of expansion and contraction of credit by major banks, we have major financial companies like AIG is serious distress. Their stock prices take a tumble and there seems to be a danger of bankruptcy. Then suddenly, like the knight on a white steed, Mr. Buffett steps in and says he will invest $10 billion in AIG. Shortly thereafter the government decides to plow $10 billion of bailout money into the company as well. The AIG ship has righted itself. Stock prices are recovering and average investors begin to take advantage of the resurgent AIG. The sneaky part is this – Buffett is waiting for the hordes of middle America to begin buying so he can sell. He never said he was going to keep his $10 billion there. He’s just waiting for the prices to move upward so he can sell his stock back to you at a higher price. See why the power elite make money with stock investing and you don’t?
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