May 22, 2013 (DJIA 15,302.56, S&P500 1,658.03)

The following are my favorite quotes of Warren Buffett from a CNBC interview on May 6, 2013. I think reading these quotes offers a great deal of value to all investors.

“People pay way too— way too much attention to the short term. If you’re getting your money’s worth in a stock, buy it and forget it.”

“I bought my first stock, you know, when— when the United States was losing the war, right after Pearl Harbor. I didn’t buy it because I thought losing the war was a great idea, I bought it because I thought stocks were cheap and that eventually we’d win the war.”

“I like owning stocks. I do not like owning bonds now. There could be conditions under which we would own bonds. But— they’re conditions far different than what exist now.”

“You shouldn’t be 40% in bonds. I would have them having enough cash on hand so they feel comfortable, and then the rest in equities. I would have productive assets. I would favor those enormously over fixed dollars investments now, and I think it’s silly— to have some ratio like 30 or 40 or 50% in bonds. They’re terrible investments now.”

“I bought bonds back in the early ’80s. We bought— we made a lot of money and we bought zero coupon bonds that— I bought ’em personally. And— no, it— it— the price of everything determines its attractiveness. And— the price of stocks was way down a few years ago. The news was terrible, but the stocks were cheap, you know. News is better now. Stocks are higher. They’re still not— they’re not ridiculously high at all, and bonds are priced artificially. You’ve got some guy buying $85 billion a month. (LAUGH) And— that will change at some point. And when it changes, people could lose a lot of money if they’re in long-term bonds.”

“Chasing yield— is— is crazy. You know, just because you’d like to earn eight percent, (LAUGH) or— or— or you’d like to earn ten percent or you’d like to earn six percent. The world isn’t going to adapt to that. You— you have to think about what is the most intelligent thing to do and if— if that produces five p— percent or six percent, that’s the best you’re going to do. But to— to get enticed into some investment that— is riskier that you don’t understand because somebody promises you a higher yield— I mean, I can— you know, I can take it down to the waterfront or something like that and they’ll promise you 15 percent or something. (LAUGH) And it just doesn’t make any sense at all. And— but, pension funds— you know, they— they haven’t been that well managed over time.”

“AIG got in trouble basically ’cause— in terms of the derivative position they had. And I think they’re changing the rules on derivatives. If the rules in terms of collateral and so on had been what they’re going to be— it would’ve been a somewhat different struggle. It was— it was a very recklessly-managed institution.”
As always, we welcome the opportunity to discuss our outlook and investments with you.


Ronald R. Redfield cpa, pfs
Redfield, Blonsky & Co. LLC
15 North Union Avenue
Cranford, NJ 07016-1103

908 276 7226 phone
908 276 7274 fax


If you are a client of ours, and if you have questions regarding the company or investment mentioned in this report please call our office. If you are not a client of Redfield, Blonsky & Co. LLC Investment Management Division and are reading these notes, we urge you to do your own research. We will not be responsible for any person making an investment decision based on these notes. These notes are a “by-product” of our research. We are not responsible for the accuracy of these notes. We are not responsible for errors that may occur in these notes. Please do not rely on us to monitor or update this or any other report we may issue. In theory, we could come across some type of data or idea, which causes us to eliminate our long or short position of the company or investment mentioned in this report from our portfolios. We will not notify reader’s revisions to these notes. We are not responsible to keep readers of these notes updated for changes or material errors or for any reason whatsoever. We manage portfolios for clients, and those clients are our greatest concern as it relates to investing. Certain clients of Redfield, Blonsky & Co LLC may not have the company or investment mentioned in this report in their portfolios. There could be various reasons for this. Again, if you would like to discuss the company or investment mentioned in this report , please contact Ronald R. Redfield, CPA, PFS (partner in charge of investment management division).

Information herein is believed to be reliable, but its accuracy and completeness cannot be guaranteed. Opinions, estimates, and projections constitute our judgment and are subject to change without notice. This publication is provided to you for information

Important Disclosures

  1. Redfield, Blonsky & Co., LLC (RBCo), only transacts business in states where it is properly registered, or excluded or exempted from registration requirements.
  2. Past performance assumes reinvestment of dividends and other distributions and may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended and/or purchased by adviser), or product made reference to directly or indirectly in this presentation or on our website, or indirectly via a link to any third-party website, will be profitable or equal to corresponding indicated performance levels. The investment return and principal value of an investment will fluctuate and, when redeemed, may be worth more or less than their original cost.
  3. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s investment portfolio. No client or prospective client should assume that information presented is a substitute for personalized individual advice from the adviser or any other investment professional.
  4. Historical performance results for investment indexes, such as the S&P 500, generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment-management fee, the incurrence of which would have the effect of decreasing historical performance results of the S&P 500 Index. Whenever RBCO performance is referred to, results have been reduced by all fees, including RBCO management fee.
  5. Returns for the RBCO portfolios have been calculated using actual time-weighted returns obtained from all accounts over the time periods indicated. All RBCO returns assume the reinvestment of dividends and are shown net of the investment management fees and all other expenses. Please see our form ADV for a full fee disclosure. Actual individual account performance may be materially different from our composite results.
  6. RBCO files an annual form ADV, which includes an easy to read brochure. Form ADV is a valuable read for anyone interested in learning more about RBCO. Additional information about Redfield, Blonsky & Co., LLC is also available on the SEC’s website at The searchable IARD/CRD number for Redfield, Blonsky & Co., LLC is 128714.
  7. The S&P 500 Index is a widely recognized, unmanaged index of 500 of the largest companies in the United States as measured by market capitalization. The S&P 500 Index performance assumes reinvestment of all dividends and distributions and does not reflect any charges for investment management fees or transaction expenses, nor does the Index reflect any effects of taxes, fees or other types of charges and expenses. The S&P 500 Index is one of many indices and is not necessarily the most appropriate index when comparing performance results.