In addition to his Berkshire Hathaway shares, Buffett reveals that he used to own nothing but U.S. bonds. Now, he writes, "If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent" in American stocks. (He's talking about his own holdings, not the billions of dollars of stock owned by Berkshire Hathaway itself.)
"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors."
While he acknowledges that the financial world is a "mess" and the economy will only get worse in the near term, he argues that over the long term, "the stock market news will be good," just as it has been throughout the 20th century. All the bad news right now creates opportunities for investors willing to look five, ten, or twenty years into the future.
Buffett admits that he doesn't have the "faintest idea" whether the stock market will be higher or lower in a month or a year, he argues that it's likely the market will move higher well before we see improvements in investor sentiment or the economy. "So if you wait for the robins, spring will be over.
As for the people who now feel "comfortable" holding cash and waiting for good news: "They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value."
In the piece, Buffett doesn't name any specific stock or stocks that he's been buying.