The dumbest reason in the world to buy a stock is because it's going up

[Trader666]

You're an idiot. Buffett became a self-made millionaire at the age of 31.
If your logic was even remotely correct, where are all the others his age worth $40 billion?

Quote from thetrendfollowe:

As for Warren Buffett, he started pretty well off (His father was hardly a battler) and if you buy companies right after world war 2 and hold for 50-60 years its pretty hard to not be rich.

His percentage annual return while impressive is not spectacular, rather its his TIME IN THE MARKETS which made him rich.

It's not Jim "Simmons" it's Jim Simons and he's in his early 70s.
You have no idea what you're talking about, let alone what these two will be worth in 25 years.

Quote from thetrendfollowe:

He is almost 80. How old is Steve Cohen? Jim Simmons? Both these guys are in their 50s. In 25 years time they will have FAR MORE wealth than Buffett.

 

[love2puck14]

Quote from Trader666:

You're an idiot. Buffett became a self-made millionaire at the age of 31.
If your logic was even remotely correct, where are all the others his age worth $40 billion?


It's not Jim "Simmons" it's Jim Simons and he's in his early 70s.
You have no idea what you're talking about, let alone what these two will be worth in 25 years.

Agree with above... Lots of ways to lose money in the 40 years

 

[crgarcia]

Quote from Spydertrader:

As is often the case, context is King.



Since you've posted on a web site devoted to trading (and not exclusively to investing), do you somehow feel traders care more about the long term than they do about the "near future?"

Warren quite clearly supports the idea of buying stocks moving higher - for those who plan to sell in the near future.

Why do you feel Warren Buffet has provided incorrect advice?

- Spydertrader

I am a long term TRADER.
I buy after panics, and sell on excessive optimism.

 

[Lethn]

This is why I'm going into commodities first, I'm really beginning to feel that Stock markets and Forex are full of it.

 

[crgarcia]

Quote from Petsamo:

A stock is never too high to buy, and never to low to sell.

- Confusious (nah - I forgot who said that).

Buffett said that for every company there's a price low enough to consider buying; and a price high enough to consider selling.

No company can offer infinite profits forever, so there's a limit on how much to pay, relative to profits.

Quote from the1:

This only applies if you are a trader. If you are an investor your job is to fight the trend - i.e. buy into falling prices when they get cheap. If I want to buy a stock like JNJ, PG, KO, or other blue chip stock I buy into large volume distributions if the price is right. You don't wait until the price starts going back up.

Most trend followers only do well for a limited time, when the trend stops and reverses, they lose everything they "gained" before and more; because they were buying a too worn-out trend.

Quote from thetrendfollowe:

+1.

The OP clearly knows nothing about trading.

The whole essence of trend following is to buy breakouts and/or uptrends. How much money is invested in trend following CTAs?

Ralph Vince's most recent book has a good section on trend following.

Its a proven technique. Not something that needs to be discussed.


As for Warren Buffett, he started pretty well off (His father was hardly a battler) and if you buy companies right after world war 2 and hold for 50-60 years its pretty hard to not be rich.

His percentage annual return while impressive is not spectacular, rather its his TIME IN THE MARKETS which made him rich.

He is almost 80. How old is Steve Cohen? Jim Simmons? Both these guys are in their 50s. In 25 years time they will have FAR MORE wealth than Buffett.

And what about Ken Griffin he's only 41 he will far surpass Buffett when he gets to 80.

Let's see if Cohen and Simons don't blowup in the next 30 years.

 

[trackstar]

Quote from crgarcia:

Buffett said that for every company there's a price low enough to consider buying; and a price high enough to consider selling.

No company can offer infinite profits forever, so there's a limit on how much to pay, relative to profits.



Most trend followers only do well for a limited time, when the trend stops and reverses, they lose everything they "gained" before and more; because they were buying a too worn-out trend.



Let's see if Cohen and Simons don't blowup in the next 30 years.

Cohen blowing up? Are you kidding me?

 

[TraderTactics]

True, there is never too high nor too low in buying stocks. It's never consistent anyway.