What Is Warren Buffett Doing?

A friend of mine forwarded an article to me this week that was written by Warren Buffet. It's quite excellent.

Warren Buffett is one of the most respected investors of our time. In the article, Mr. Buffet relates how the markets have performed since the Great Depression, and talks about how he's investing during the current financial crisis.

Check out the article by Warren Buffett titled Buy American. I am.

New Stock Positions

Today I bought Southwest Airlines (LUV) and Corning, Inc. (GLW).

The management team at Southwest continues to impress me. Southwest is the only airline making money right now, due in large part to their ability to hedge against future fuel costs in the derivatives markets. I read this week that they're buying fuel for only $2.01 per gallon right now. The Wikipedia article on Southwest Airlines has more details on their fuel hedging strategy.

I also bought Corning, Inc. after reading about their latest quarterly revenue tripling due to LCD TV panel growth. Their factories are currently running at capacity, and they stated that "demand for liquid crystal display televisions and computer monitors are unhurt by the U.S. economic slowdown".

I also took a look but decided to hold off on adding to my position in MEMC Electronic Materials Inc. (WFR) today. Although I still like the stock, it looked set to close below its 200 day moving average today on almost double its average daily volume. I want to be sure it's able to hold above its 200 day moving average before committing any more money to it.

Have you bought any stocks lately? Which ones, and why?