Warren Buffett Gave Up On Beating SP500

[ironchef]

https://www.marketwatch.com/story/w...out-given-up-on-beating-the-sp-500-2019-05-10

However, I think he is still trying, using one weapon that the SP500 does not have: Buy Back. If he could buy back his stocks on the cheap when the market is down, over time he will still beat.

 

[nooby_mcnoob]

He's already set the stage for this by saying that BRK is too high right now.

 

[dozu888]

Easy to beat the spy. NDX 12.5% since 1986 annualized.

 

[carrer]

Traditional investment strategy, buy and hold, is hard to outperform the index and they have high correlation.
Unlike trading (long&short) where you can use leverage to outperform the market.

 

[ironchef]

Traditional investment strategy, buy and hold, is hard to outperform the index and they have high correlation.
Unlike trading (long&short) where you can use leverage to outperform the market.

He has interest free insurance floats, so he has leverage. Why is he underperformed?

 

[Jason11111111]

Anyone did a back calculation if he did not have the short term bonds and cash float. Will he beat the market?

 

[kj5159]

He and Munger have the ability, they just have way too much money to invest, he's commented on this numerous times.

 

[ironchef]

Anyone did a back calculation if he did not have the short term bonds and cash float. Will he beat the market?

Good point.