One of the many things Warren Buffett is known for saying, is to "be fearful when others are greedy, and be greedy when others are fearful." In our lifetimes, this is one of the most significant times where that saying has more meaning than ever.
We do have to keep one thing in mind right now before going ahead, and that is the U.S. government is now using Warren Buffett as a mouthpiece to calm the markets down and hopefully bring investors back to equities in order to get some money flowing. So everything he says in these areas has to be taken with that as a backdrop.
Even so, what Buffett is saying about this being a great time to invest in American publicly-held companies is true.
This difficult market has one great value for investors: it exposes the weak as well as the solid companies, so what to look for when considering investing in U.S. companies at this time is really simple - don't invest in companies that are highly-leveraged, and look for those with strong competitive advantage. These companies will perform strongly in the next 10 to 20 years.
The current discount on some of the better companies in America make this one of the most ideal times to expand our ownership in companies.
As Buffett has always said, over the short run, there's no way anybody can know how a company will do, but keeping in mind the competitive advantage and companies without too much debt, we will do good over the long haul.
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