Backchat was intrigued by the latest pearl of wisdom from investment guru Warren Buffett. The “sage of Omaha” and world’s richest man is excited about US equities.

“I’ve been buying American stocks; this is my personal account I’m talking about,” he tells a US newspaper.

But haven’t US stocks been going down the Swanee for a while? Yes, they briefly rallied when Barack Obama won the election, but sank back when people realised this didn’t mean the downturn was over.

Of course, Buffett has a rational explanation for backing US equities. “Be fearful when others are greedy, and be greedy when others are fearful,” he says.

“I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month – or a year – from now.

“What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.”

Well, you’re the expert, Warren.