Warren Buffett vs. the Bears
Warren Buffett, the "sainted, genuine stock sage," is completely at odds with what's reported about the stock market in the mainstream media, Cramer said Wednesday. Speaking on CNBC's "Squawk Box," the Oracle of Omaha painted a completely different picture than what one would hear from the bears that dominate the media today.
Buffett, who serves as CEO of Berkshire Hathaway , said he likes investing in the USA. There is "resiliency to the American system," he said. The 80-year-old executive also said the U.S. employment picture will continue to improve and the housing market will pick up after the excess supply is soaked up in one year's time.
Contrary to the bears, who suggest getting out of the stock market, Buffett said he wants to buy stocks now. Of course, the averages have been getting hammered and the bears are quick to note the market is overvalued. From costs to taxes to labor and materials, everything seems to be going up, too. Raw costs may decimate profitability in the steel industry, but Buffett said he likes steel companies.
Also unlike the bears, Buffett is optimistic. He remains bullish on the markets in the face of unrest in the Middle East and rising oil prices, among other calamities.
The renown investor also said he's happy with his purchase of railroad Burlington Northern. The bears, however, scoff at the purchase on fears China could raise rates to where nobody will want to ship anything by rail. Buffett doesn't seem worried, though.
Everything Buffett said seems to counter that what's reported day-in and day-out, Cramer said. Those who, like Buffett, think the U.S. economy is and will improve are made to feel like idiots. But if that viewpoint is making Buffett money, Cramer said it might be time we all give stupidity a chance.
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