That is why he is a careful investor who does his homework and knows when to sit
on his hands.
That is a hard, hard thing to do when you are like me
and you enjoy fishing, especially bottom-fishing. Unfortunately those who
bottom-fish end up catching scum-sucking bottom dwellers. Do you know the
difference between a catfish and a lawyer? One is a fish and the other
is....
I'm yearning to buy some cash-rich precious metals
companies such as Yamana Gold (NYSE:AUY) and Silver Wheaton (NYSE:SLW), and some
good energy companies, but they've had a big run-up of late.
Maybe in a week or two I can buy some good income
producer like San Juan Basin Trust (NYSE:SJT) or some smash-hit
natural gas companies like XTO Energy (NYSE:XTO) and
Chesapeake Energy (NYSE:CHK) at 10 or 20% below where they are
right now.
Take a look at the chart below. With the price up to $11.78 today, the price
of natural gas might be ripe for a correction.
Speaking of natural gas companies, I tend to agree with one of
Jim Cramer's recent worries; "I am getting nervous about my
strong natural gas stand. The year of natural gas, as I call it. I am getting
nervous because I am beginning to hear people talk about natural gas as an
alternative to oil. Heavens! Natural gas is the easiest, cleanest, most abundant
and best fuel around, but neither the president, nor any of the candidates
believe in it."
"The stocks, Apache, El Paso, Anadarko, , XTO, Ultra, ,
Southwestern, Chesapeake, Encana have all moved so much that I worry
without a switch from the top out of ethanol and into natural gas, we are going
to be liking these stocks solely for their asset values -- as nat gas goes up --
and not for their replacement value. I care about both because natural gas
futures tend to be so volatile..."
So dear investor, we best be careful here at the top and wonder
if sitting on our hands or taking a trip to Europe like Mr. Buffett makes a
great deal of sense till things settle down a bit. Bon voyage!
