Warren Buffet

Today Warren Buffet announced on CNBC that commodities are his choice for a safe haven as the US economy continues to choke on debt and stall on inflation worries.

Even as stocks rose this week, savvy investors are peering deeply into the earnings reports and wonder how much is real and how much is off the books. Optimism is a choice; so is caution.  Few investors are willing to bet long term on paper profits going forward --especially with inflation and increased US unemployment on the horizon.

Building on Berkshire Hathaway's philospohy, one in the hand is worth two in the bush is more true now than ever before. In simple investor terms, hang on to tangibles and tread carefully with everything else.

Even tangibles can have extreme acceleration and suddenly drop by 30 - 50% within a very short amount of time as witnessed by real estate values over the last couple of years.

Fortunately, when there are storms in one region of the world there is calm in another corner of the globe.  Decoupled and growing economies like China, India and Brazil contrast the restless and unsteady economies of the US and EU.  Although opportunity surrounds wise and prudent investors on both continents, no amount of borrowed money is going to provide a quick fix for the former robust US and EU economies.

Warren Buffet hit the perverbial nail on the head when he suggested the best hedge for savvy investors at this time is still in commodities.  Stubblefield Salvage and Recycling, LLC agrees with Mr. Buffet and continues to expand its purchase and resale of ferrous and nonferrous scrap metal commodities.   Increased attention to the quality of our scrap commodities continues to contribute to the economic vitality of our business model and provide alternative incomes for people in our region.

Thought for the moment:

Faced with hunger and given a choice, would you rather have a dollar or a loaf of bread?