Your Language Queries: Warren Buffet Stock

Clive answers:

Short selling is not new. People were doing that during the early 1930′s during the Great Depression.

Warren Buffet wouldn’t care about short selling. He’s more an investor than a trader. Warren analysis businesses more than share prices and buys solid companies that are undervalued.

After the sell off, when the market crashed in October 2008, I read on the bloomberg website that Warren bought into General Electric and Goldman Sachs.

With so many undervalued companies such as General Electric and Microsoft, short selling is financial suicide at the moment.

Years ago, when I first short sold a down trending market, I got more excited and short sold more as the down trend continued. As it turned out my losses when the market rebounded sweeped away my early gains. I learned the hard way many times that the market is for making money, not your ego.

The sort of people who are short selling now are novice traders who only look at charts at the markets bottom or near bottom and don’t also analyze the underlying businesses.

A girl on Yahoo answers asked if Google would be good stock to short sell. Google like other tech stocks is now on an up-trend.

Save it for the next bust. I think the next bull market boom/bust will be bigger than the last, so it’s well worth the wait in years to come.