How does Warren Buffet scale in and out?

As mentioned, It's easier for Buffett to buy cheap than it is for you.

Why? Because he KNOWS whats cheap and you just think you know.

So he just bids a penny more than the next guy for as long as it takes to buy as much as he wants.

Easy.


PS Indicators dont tell you a damn thing about this.
 
Quote from stock777:

As mentioned, It's easier for Buffett to buy cheap than it is for you.

Why? Because he KNOWS whats cheap and you just think you know.

So he just bids a penny more than the next guy for as long as it takes to buy as much as he wants.

Easy.


PS Indicators dont tell you a damn thing about this.
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I buy businesses at 0.50 cents on $ 1, its called value investing, nothing new, nothing secret about it. In fact here is book I highly recommend you read :

RULE#1 by PHIL TOWN.

It tells you exactly how WARREN BUFFET buys businesses and how to do your online research in 15 minutes. This is so simple, its amazing and yet so powerful.

Indicators do tell you a lot, and they are part and parcel for a successful trading plan.
 
stock 777, you have zero clue....ever heard of working an order? he will buy in the hole, when there is size for sale...he is patient...yikes, bid a penny more? for what? he buys size, you own stupidity.
 
BNI trades around 4.4 million shares a day, thats like 330 million over 3 months. At an average price of $80 thats a volume of $26bn. Market cap is $29bn. The only thing that's needed here is secrecy and thus a trading desk you can trust 100%.

I once read Buffet asked the SEC for an exception for his 13F filings; they granted him delayed filings so he can accumulate all he wants of the float and only then has to make it public so the headlines won't adversely impact his buying prices too much.
 
Quote from day7793:

Buffet is a value investor. Some mutual funds beat the pants off this guy for yearly comparisons. For example

CACFX has performed 56% YTD returns while BRK.A hasn't done less than 10% YTD.

This guy is lots of publicity and good PR. [/QUOTE

a ridiculous statement. every year there are mutual funds which outperform BRK.A
what about performance over 3 yrs. 5yrs. and ten years?

"This guy is lots of publicity and good PR. "
+ he got the money and you spend your time spouting nonsense.
are you one of the group who attacks jim rogers?
a recent post thought icahn was nothing special.

the amount of jealousy and envy emanating on this board seems to know no limit.
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Quote from bontrjd:

How do large funds and traders scale into a position and hide their trades? It seems like when you have that many shares to buy that people would front run your orders and make it tough to put on a sizeable position. Wasn't it Steve Cohen who admitted to placing fake trades in one direction oto throw off the people following his firm?
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Believe it or not ... Warren Buffett picks up the phone in his unremarkable office, calls his broker, and says "Buy 10M McDonalds shares thank you", then hangs up the phone.

Later on in the day he gets a call back confirming that he bought 10M McDonalds shares and what the average price was (he answers his phone himself and calls in his orders himself).

A good broker, gets you good execution at a fair price. If not, there will be a long line of brokers wanting to pick up Warren's account. I have no idea how the brokers at Goldman Sachs deal with Warren's order, but I don't think you want to cheat the man ;)

This is what you had to do in the 1980s before the first Etrade account over the compuserve command line dial up service in 1991.

Warren is not a man that is concerned with marginal improvement in trading execution ... he looks at the a long term big picture and rounds most figures to their 2 or 3 most significant digits (he hates false precision).
 
it is called algorithmic trading and it is big business atm
google algorithmic trading and see various algorithms
for slicing and dicing orders, giving false signals etc
so that real intentions remain hidden
official estimates are 40% of market vol is algorithmic trading
no prediction trading systems etc, but intention-hiding systems
can they be reversed, well the one who can has an edge :)
 
Quote from danoXP:

Believe it or not ... Warren Buffett picks up the phone in his unremarkable office, calls his broker, and says "Buy 10M McDonalds shares thank you", then hangs up the phone.

Later on in the day he gets a call back confirming that he bought 10M McDonalds shares and what the average price was (he answers his phone himself and calls in his orders himself).

A good broker, gets you good execution at a fair price. If not, there will be a long line of brokers wanting to pick up Warren's account. I have no idea how the brokers at Goldman Sachs deal with Warren's order, but I don't think you want to cheat the man ;)

This is what you had to do in the 1980s before the first Etrade account over the compuserve command line dial up service in 1991.

Warren is not a man that is concerned with marginal improvement in trading execution ... he looks at the a long term big picture and rounds most figures to their 2 or 3 most significant digits (he hates false precision).
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Exactly and this is why individual traders like us have an advantage because we can move in and out during these big block trades. Buffett could care less if he has to pay $100,000 more, but I love taking a slice of that. How do you figure out when a large order is being placed---ahh that takes years of tape reading practice.
 
Quote from danoXP:

Believe it or not ... Warren Buffett picks up the phone in his unremarkable office, calls his broker, and says "Buy 10M McDonalds shares thank you", then hangs up the phone.

Later on in the day he gets a call back confirming that he bought 10M McDonalds shares and what the average price was (he answers his phone himself and calls in his orders himself).

A good broker, gets you good execution at a fair price. If not, there will be a long line of brokers wanting to pick up Warren's account. I have no idea how the brokers at Goldman Sachs deal with Warren's order, but I don't think you want to cheat the man ;)

This is what you had to do in the 1980s before the first Etrade account over the compuserve command line dial up service in 1991.

Warren is not a man that is concerned with marginal improvement in trading execution ... he looks at the a long term big picture and rounds most figures to their 2 or 3 most significant digits (he hates false precision).
More...


Is WARREN BUFFET computer challenged? He does not have Internet connections and emails? What you are telling me he probably looks at the " newspapers" for stock prices perhaps?
 
Quote from day7793:

Is WARREN BUFFET computer challenged? He does not have Internet connections and emails? What you are telling me he probably looks at the " newspapers" for stock prices perhaps?
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Don't quote me but I'm quite convinced (95% sure) that I read from a reputable source that Buffet still does look at his stocks' prices in the newspaper.
 
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