para los que no quieran leerse el
artículo entero de fortune, esto es un resumen que ha difundido
Buffett shuns stocks,
invests in junk bonds
NEW YORK — Billionaire investor Warren Buffett said he's shunning stocks
because they are too expensive and he has turned to buying junk bonds.
"Despite three years of falling prices, which have significantly improved the
attractiveness of common stocks, we still find very few that even mildly
interest us," Buffett said in excerpts of his annual letter to shareholders
published on Fortune.com. "We continue to do very little in equities."
Buffett, who has become the world's second-richest man buying stakes in
companies such as Coca-Cola on the cheap, is standing firm on his view that
stocks are overvalued, even after three years of declines. That's spurred him to
boost his junk-bond and loan investments sixfold to $8.3 billion in 2002.
"He continues to thrive as a buyer of distressed assets," said James
Armstrong, president of Henry H. Armstrong Associates, which owns about $36
million in shares of Buffett's investment company, Berkshire Hathaway.
Buffett said he is buying junk bonds now because he can find "sensible
prices." The investments involve greater risks than stocks because they often
involve companies overloaded with debt, he said.
Buffett was far more negative on stocks, saying that "the insanity of
valuations reaching during The Great Bubble" has yet to end and has kept him and
Berkshire Vice Chairman Charles Munger on the sidelines. "Occasionally,
successful investing requires inactivity," he said.
Some investors said Buffett is wrong about the stock market.
"I would respectfully disagree with Mr. Buffett," said Robert Morris, chief
of equity investment at Lord Abbett, which manages $48 billion in Jersey City,
N.J. "The approximately 45 percent decline from the peak of the bubble pretty
much erases it for us."
With inflation as low as it is, returns for stocks look attractive, Morris
Buffett lashed out against derivatives in the letter, calling them "time
bombs, both for the parties that deal with them and the economic system."
Derivatives are contracts whose value is tied to the value of another asset or
Buffett's full letter is to be published Saturday along with financial
results of Berkshire. Buffett's assistant confirmed the excerpts.
Berkshire Hathaway shares added $1,700 to $63,400 yesterday. They have
declined 13 percent in the past year