Sunday, March 8, 2009

Top gurus: The best investment for 2009.

Based on the investor poll, commodities seem to be the most appealing investment for 2009. Followed by stocks, bonds and cash as the worst asset class for the year.

In this post I would like to gather opinions about investing in 2009 from top investor gurus. Let me start with Warren Buffett. Warren called stock market bottom already in mid 2008 and have started to add equity positions to his holding. Last actions show buying interests in railroads companies. He increased stake in Burlington Northern (BNI). Despite of declining volume, earnings have gone up by 19%. Other interesting picks from industry are Union Pacific with 35% earnings growth or CSX Corp (CSX) with 16%.

Another two top investors, Donald Coxe and David Winters, like railroads. Companies will benefit from low energy costs. P/E vary in range of 6 - 8 for the top companies in the sector with book value equalling to the current share price. Still amazing growth rate makes attractive PEG ratio.

George Soros is one those investors betting on oil price rebound. His major favorite in Brazilian Petrobras (PZE). In February he also upped stake in Best Buy (BBY).

At the end of this post let me give you one tip for the book Guru Investor. You can find out and follow some good tips in past from investors like Peter Lynch, Benjamin Graham, Warren Buffett or others. Now the book is discounted on Amazon by 34%.


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