FRIDAY’S QUOTATIONS – Food For Weekend Thought – (selected and distributed weekly by R.Varga, Johns Creek, GA since 1988)

Risk comes from not knowing what you are doing.”

Warren Buffett

 

The wise man has long ears and a short tongue.”

– German Proverb

 

Who’s not sat tense before his own heart’s curtain.”

Rainer Maria Rilke

 

“Pay your people the least possible and you’ll get from them the same.”

Malcolm Stevenson Forbes

 

“Don’t tell me the sky’s the limit when there are footsteps on the moon.”

– Unknown

 

“Nothing is so fatiguing as the eternal hanging on of an uncompleted task.”

William James

 

“Success is the sum of details.”

– Harvey S. Firestone

 

We exult in our tribulations, knowing that tribulation brings about perseverance, and perseverance, proven character, and proven character, hope.”

– Romans 5:3-4

 

An investment in knowledge always pays the best interest.”

– Benjamin Franklin

 

Love is not blind – it sees more, not less. But because it sees more, it is willing to see less.”

– Rabbi Julius Gordon

 

The speed of the boss is the speed of the team.”

Lee Iacocca

 

A consultant is someone who saves his client almost enough to pay his fee.”

– Arnold Glasgow

 

“It is terribly important to realize that the leap of faith is not so much a leap of thought as of action. For while in many matters it is first we must see then we will act; in matters of faith it is first we must do then we will know, first we will be and then we will see. One must, in short, dare to act wholeheartedly without absolute certainty.”

William Sloane Coffin Jr.

 

It’s not what I say that matters. It’s what you hear.”

– James Crupi

 

You cannot plow a field by turning it over in your mind.”

– Irish Proverb

 

What we see depends mainly on what we look for.”

Sir John Lubbock

 

“It was easy enough to kill yourself in a fit of despair. It was easy enough to play the martyr. It was harder to do nothing. To endure your life. To wait.”

– Erica Jong

 

“Faithless is he that says farewell when the road darkens.”

J.R.R. Tolkien

 

“There is no comparison between that which is lost by not succeeding and that which is lost by not trying.”

Francis Bacon

 

“Nothing is more despicable than respect based on fear.”

Albert Camus

 

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Billionaires Weigh In…

Remember John Paulson, the fund manager who became a multi-billionaire during 2008 by massively shorting mortgage backed securities? According to Brett Arends of

 

 

The Wall Street Journal Paulson made 3 big financial calls late last year that you need to know about.  First, he said gold could go to $2,400 an ounce based on the fundamentals. Second, he said you’re better off investing in blue chip stocks with good dividend yields than bonds. And third, he said you should buy a home. Now. If you don’t own a home, buy one, if you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home”.

Why does he feel this way? Paulson anticipates the kind of inflation that causes prices of everyday goods to soar and turns homeowners into geniuses.

Brett Arends, continues, “Paulson sees inflation coming by 2012 or so. The explanation isn’t hard. Put simply: We will get inflation because we have to. We are the most indebted nation in the history of the world…There is only one plausible route out of this appalling situation. The government needs inflation. The country needs inflation. That will shrink these debts in relation to the economy, asset prices and incomes.” Although home prices could certainly still slide, add in the impending inflation and the effective price of a home increases.

Similarly, Warren Buffet, an internationally recognized billionaire, in his economic outlook earlier this year noted, ” A housing recovery will probably begin within a year or so”. Buffet is considered a long-term investor, not a timer. He tends to be early in his projections however

 

Buffet has let it be known Berkshire is ramping up spending and acquisitions at its housing-related businesses

This is still not a market where flipping homes would be an effective investor strategy.  However, mortgage rates are still at an all time low and the real estate market is 30% down from its peak according to Standard & Poor’s Case-Shiller Index. This buyer’s market of both a housing market low and an inflationary low means these factors could make real estate a good long-term investment.

from Starker New 2nd Qtr. 2011

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