Back in October, Warren Buffett, the Oracle of Omaha, wrote an op-ed piece for The New York Times about how the time to be greedy was when other people were fearful. That was the time to start investing in stocks, he said. Prices might fall farther, Mr. B warned, but in the long run -- five, ten years -- starting to buy now would look smart.
Mr. B's advice came a little early, as this chart shows, but the Market seems to have bottomed in November. Because Mr. B has such a sparkling record of buying stocks cheap, we thought we'd remind you people again that it might not be a bad idea to start putting a little cash into stocks yourself.
I repeat my advice from October on what to do...
"Here's one idea: SPY is an American Stock Exchange-traded fund that holds all of the S&P 500 Index stocks. Every big name blue chip you can think of. Well, minus a few recent casualties. Spreads the risk of picking a stock. Just a way to play the whole economy. Less than 1% in expenses. You can add or subtract from your holdings all day long, not just once, whenever you want. A great way to save: Each month when you do the bills, write yourself the first check. Buy a few shares of SPY."
A few years from now, you'll wish you'd listened.