(Yesterday thus pictured...)"Do Good on the Sabbath Days"
SECTION I: President's Unofficial Financial Friend
I do not think Mr. Buffett is promised future admission into Heaven yet; but President Mr. Barack Obama seems to respect him, which we have to respect.
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Stocks and the economy will rebound, and the best days for the U.S. are ahead, said Buffett, chairman of Berkshire Hathaway Inc., in his annual letter to shareholders yesterday. Buffett said he’ll spend the recession shopping for new investments for Omaha, Nebraska-based Berkshire.
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Buffett, an informal adviser to President Barack Obama, said the consequences of the U.S. housing bubble are now “reverberating through every corner of our economy.” Gross domestic product shrank at a 6.2 percent annual pace from October through December, the most since 1982, the Commerce Department said Feb. 27.
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Buffett said he made a “major mistake” in buying shares of oil producer ConocoPhillips when oil and gas prices were near their peak. Berkshire paid $7.01 billion for its remaining stake, which was valued at $4.4 billion as of Dec. 31.
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http://www.bloomberg.com/apps/news?pid=20601068&sid=aFmgGBH8rr4Y&refer=home
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SECTION II: Truth of Fibonacci Series
As I explained a few weeks ago, the core of the meaning of the Fibonacci Series is that the Series indicates a form of a feedback system.
"The Fibonacci Series is a feedback system."
(It must be so taught in schools all over the world to praise the Creator.)
This is my assertion and it tells why the nature includes so many examples of application of the Fibonacci Series.
In a relatively stable situation, an event develops by repeatedly applying the same mechanism.
In it, a value or a volume in a previous cycle of development is used as the easiest base to adopt. Then a new value or volume will be added if it grows or subtracted if it wanes.
Value (t) = Value (t-1) + Addition,
while "t" is time.
In the nature, the handiest value or volume is, of course, Value (t-2): something used two moments before.
Value (t) = Value (t-1) + Value (t-2)
Accordingly, you can get the basic Fibonacci Series:
0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181, 6765, 10946, 17711...
Identifying the origin of the Fibonacci Series as a feedback system and thus a general rule of development of events in the nature is thus here established by EEE Reporter.
What he wants to emphasize is that the human society, including its economic activities, is also deeply influenced by the general rule of the nature, since people live, move, and think rather periodically in a feedback system.
So, please refer to the EEE-Reporter articles on Feb. 17 and 18, 2009.
SECTION III: APPLICATION
It was reported that Berkshire paid $7.01 billion for its remaining stake, which was valued at $4.4 billion as of Dec. 31.
A Fibonacci sequence that leads to $7.01 billion must be like this measured in some time interval:
0.049, 0.097, 0.146, 0.243, 0.389, 0.632, 1.022, 1.655, 2.677, 4.333, 7.01
Actually, now their $7.01 billion retreated back to $4.4 billion.
Maybe this market is following the Fibonacci sequence.
Also interesting are the ratios of any given number in the Series and its next number, its second next number, and its third next number, respectively. These ratios are fixed as below:
Value (t) / Value (t+1) = 0.618
Value (t) / Value (t+2) = 0.382
Value (t) / Value (t+3) = 0.236
Therefor, even in the money market, brokers and traders are watching a change of a variable reaching a 61.8%, 38.2%, or 23.6% level against a certain reference value.
Implication of these ratios will be later discussed.
Yet, if you lose money at a pace of 61.8%, 38.2%, or 23.6%, you must know it is not disastrous, since it follows a rule based on the golden section ratio.
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That is all for today.
It is so since nowadays early spring and late winter coexist here and there. So, a turn of the season requires a special care in your physical and spiritual conditions.
And a safer way is just take repose at such a time, since the Fibonacci series in the nature is mostly discrete, taking only integers.
Mar 3:1 And he entered again into the synagogue; and there was a man there which had a withered hand.
Mar 3:2 And they watched him, whether he would heal him on the sabbath day; that they might accuse him.
Mar 3:3 And he saith unto the man which had the withered hand, Stand forth.
Mar 3:4 And he saith unto them, Is it lawful to do good on the sabbath days, or to do evil? to save life, or to kill? But they held their peace.