Warren Buffett, the billionaire investor and CEO from Berkshire Hathaway who has overtaken Bill Gates position as richest man in the world says that we’re already in the recession.
“I believe that we are already in a recession.
It is perhaps not a recession in the way that economists would understand it… but people are already feeling the effects and it will be deeper and longer than people think.”
– Warren Buffett, May 2008
The official definition economists maintain for a recession is 2 quarters of negative growth. But Warren Buffett maintains a more practical, down to earth definition many “common” people would recognize: a recession is when most people and businesses are not doing as well as they were three, six or nine months ago.
And by that definition, says Warren Buffett, the economy is clearly in a recession.
Although he doesn’t rule out that things will be as bad as they were in the recession of 1973-1974, he remains quite positive and does believe that overall every generation will live better than the one before it. Not only that, he’s convinced that despite the weak dollar the US economy will do fine in the long run. And he puts his money where his mouth is; he keeps buying and investing and last December had his investment company announce the biggest cash purchase in its history.
“Despite our country’s many imperfections and unrelenting problems of one sort or another, America’s rule of law, market-responsive economic system and belief in meritocracy are almost certain to produce ever growing prosperity for its citizens.”
– Warren Buffet, March 2008, in a letter to shareholders
Mr. Buffett has said his holding company will continue to concentrate its assets in the U.S
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