Investment legend Warren Buffett says the worst has passed for the economy, but that we’re not out of the woods yet.
Last fall in an interview with CNBC, he said the economy was in a “Pearl Harbor” stage.
Asked now by the network whether the economy is still in that situation, Buffett says, "Well, no. We're at a war now to some degree, but Pearl Harbor was September.”
He explains, “At that point, you could have lost the war. And there was a strike at the heart of the American system, the financial system.”
But, Buffett says, “We got past that. Some of the right decisions were made then, so I give people great credit for doing that. The war isn't over, though."
Renowned Buffet watcher Whitney Tilson of T2 Partners says this year’s meeting is the most anticipated one ever, for two reasons.
“First the general economic environment is one which has caused a lot of people around the world a lot of concern,” he says.
“Investors are looking for guidance, and who better to turn to than the most famous and successful investor of all time.”
Second, Tilson says, Buffett “had his worst year ever last year as measured by the decline in book value of Berkshire Hathaway stock. So I think a lot of the faithful are coming to be reassured.”
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