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MarketFoolery

MarketFoolery: 03.09.2011

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 9 March 2011

⏱️ 12 minutes

🧾️ Download transcript

Summary

The bull market celebrates its two-year anniversary. How long will the party last? Burlington Northern Santa Fe produces $2.25 billion in dividends for Berkshire Hathaway. Where will Warren Buffett invest his latest billions? Boston Beer reports weaker-than-expected earnings. What’s on tap for investors?

Transcript

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0:00.0

It's Wednesday, March 9th, and this is Market Fullery.

0:05.0

I'm Chris Hill and joining me in studio today from Motley Fool income investor James Early,

0:10.0

from Million Dollar Portfolio Dave Meyer, and and from Hidden Gems Charlie Travers.

0:14.4

Guys, good to see you.

0:15.4

Good to see you, Chris.

0:16.6

Warren Buffett has a big dividend check and Sam Adams has a big a hangover.

0:20.9

We will get to those stories in a minute but first happy anniversary

0:24.1

guys it is the two-year anniversary of the bull market who whoa

0:29.0

so I didn't get you anything well maybe we get some champagne on ice after the taping.

0:35.0

Since the market's low point on March 9th 2009, the S&P is up 95%, the Dow is up 87%.

0:42.0

James Erlient, let me start with you.

0:43.6

At what point as an investor do you start to get nervous

0:46.4

that all of this is going to end?

0:47.6

Well, Chris, when nobody else is, I think that's the simple answer.

0:50.6

A market watch story pointed out that retail investors did most of

0:53.6

their selling in 2008 and 2009. And stocks now that stocks are up 100% since

0:58.9

their 2008 lows, retail investors have now decided it's safe to start buying again.

1:04.3

So this tendency of retail investors to do dumb things is unfortunately well documented by academics,

1:09.7

but that doesn't seem to stop them.

1:11.3

So this could keep going for a while longer fueled by retail

1:14.4

investors looking to get back in? As long as we have done people we will have

1:16.8

stocks that just keep going up yes. Not all retail investors are dumb. I just want

...

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