Financial Future

Closing years late, billionaire Warren Buffett told his view of the economy in the future. From the predictions, there are eight points about the economic crisis that still haunt the country in various parts of the world.

Market participants assess this prediction is called the projection that is not bound by time. The reason Buffett gives general and comprehensive.

The following eight Warren Buffett’s view, as quoted CNBC.com, Tuesday (1/12/2009);

1. Forever recession is unavoidable. As the crisis that occurred in 2007. Buffett said that if the unemployment will increase significantly, and the U.S. economy fell into recession in 2008. According to Buffett, the shock is the capitalist cycle.

2. Any company or country will survive the recession and the future will be like they’ve survived past problems. “We have a wonderful economy. There never was anything like that in world history. We live seven times better than a century ago. We’ve got a problem all along. If you saw the last century, we have the Big Depression, World War II, the dam has the atomic bomb. But many countries are capable of running well, “he said.

3. Recessions will create opportunities. “I feel much better in my lifetime in 1974. And it is a very pessimistic and the oil shocks and stagflation, and all similar matters. But cheap stock prices.”

4. All shares will not be cheap. Market participants waited for the movement of the stock at the right time and right price.

5. Economic chaos will bear fruit mistake. Buffett cites this advice from his mentor Benjamin Graham: “You’re not right or wrong because others agree with you. You are right because the facts are correct and your reasoning correctly. And that’s the only thing that makes you right. And if the fact – facts and your reasoning is correct, you do not have to worry about other people. ”

6. Investors will mistakenly think falling stock prices is a bad thing. “If they lower the price of hamburgers at McDonald’s today, I feel great. Now I do not go back and think, gee, I paid a little more yesterday. I think I’ll buy it cheaper today. Whatever you do will come back to buy at times front, you want to have to be cheaper. ”

7. In a good situation sometimes often bad decisions. In 2000 Buffett letter to Berkshire shareholders, he compares the many market participants who buy when prices are high. “They know that overstaying the celebration (ie, continue to speculate) in the giant companies that have valuations relative to their cash, tend to produce in the future.

8. There will be more parties with wild stocks. “The world went mad. What we learn from history is that people do not learn from history,” added Buffett.

Although only 35 feet wide per side only, but the selling price of homes in the West Village, New York, it’s not like the form of small buildings and narrow, the house is sold at a price of Rp 27.9 billion.

As quoted from wcbstv.com, on Wednesday (26 / 8), because the small building, then to address it only takes half an address, ie, Bedford st No. 75 1 / 2.

Just imagine, three-story house also has a basement and has only 2.7 meters wide and 12.8 meters long, it has various facilities need a complete household.

Starting from the refrigerator, a bathroom on each floor, gas stove, fireplace and even a small garden at the rear of each floor.

In addition to his unique condition, the house with a red brick wall was found to have their own history.

The house was built in 1800 it was once inhabited by famous people, such as actor Cary Grant and John Barrymore, Pulitzer Prize-winning poet Edna St. Vincent Millay, cartoonist William Steig, and anthropologist Margaret Mead.

History of this house who also driving up the sale price.

In the international business world, Donald Trump is one of the most successful entrepreneurs ever in the 20th century. Besides known to have abundant wealth, Donald Trump is known also as entrepreneurs “Back from the Brink” or “Rising From Ruin chasm”.

How not, when it was the 90’s recession hit the United States. Property business faltered. Falling stock prices. Billionaire Donald Trump, including the right to feel the impact of the crisis, then he has a fortune estimated at U.S. $ 1.7. But in a recession so, his wealth at any time can evaporate without a trace. Moreover, he also had a debt with the Bank to invest in the casino “Taj Mahal” of nearly U.S. $ 1 billion.

Trump pockets situation more difficult because the banks that had been supported also increasingly restless. In 1992 for rescuing a luxury hotel Trump Plaza Hotel, Trump gave 49% of its shares to the banks with some funds on the condition that he remained as Chief Executive even without pay. Trump debt continues to swell, in 1994 had reached U.S. $ 3.5 billion. But with a number of skilled negotiating stance, he could convince the credit provider. Trump survived until the property industry and then recovered.

After struggling with a difficult time for ten years, entered the year 2000 began binis Trump bergeliat again. In 2004 he became a producer for the TV show “The Apprentice” who then sold.

He also founded the Trump University, held a “Miss Universe”, and so forth, which certainly adds koceknya. With these measures continue to increase their wealth. In 2008 and his property was mentioned already reached U.S. $ 3 billion!