Warren Buffett is buying American

At times like these, it’s good to get a reality check from someone like Warren Buffett, who understands the current financial crisis, doesn’t underestimate it, yet is able to see beyond short-term panic to long-term opportunity. The day after this op-ed appeared, it was the most-emailed item at the New York Times website.

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. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now.