Wednesday, February 8, 2012

Rogers is bearish on America, but Buffett runs with the bulls (AXP, KFT, PG) - NASDAQ

Time Magazine recently dubbed Warren Buffett " The Optimist, " telling the story of why he's "bullish on America." Meanwhile, Jim Rogers is shorting U.S. stocks. How can two of the world's most successful investors take such different perspectives?

As Time's Rana Foroohar writes, Buffett "believes in making money. He believes in fairness. He believes in the ability of government to make people's lives better. But most of all, he believes in luck." The Sage of Omaha looks back at his own good fortune and looks for investments that lead to a brighter future.

This is nothing new: in the fall of 2008, the nadir of the Great Recession, Buffett wrote a  New York Times op-ed telling the world to " Buy American ."  He outlined a simple strategy: "Be fearful when others are greedy, and be greedy when others are fearful."

With the Dow finally nearing pre-recession levels, Buffett's investments are not only looking prescient, but very profitable.

Meanwhile, as detailed in previous articles  on www.emergingmoney.com , equally legendary investor Jim Rogers is shorting U.S. stocks. Rogers has stated in interviews that there is a "100% chance" that there will be another financial crisis like that of 2008.  According to Rogers, it will be worse and will hit the United States very hard.

What reconciles the two views? Can both be right?

Perhaps. Time points out that Buffett's holdings, "aren't bets on America so much as they are bets of the ability of American companies to continue exporting capitalism around the world." He puts his money in companies like American Express ( AXP , quote ), Kraft ( KFT , quote ) and Procter & Gamble ( PG , quote ) -- global franchises that get an increasing amount of their business from emerging markets.

Both Buffett and Rogers are bullish on the global market -- and investing in US multi-nationals gives Buffett the best of all worlds.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


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Jim Rogers

Warren Buffett

Nouriel Roubini