I was reading an article where he said hold forever and never lose money.... Wow that doesnt sound like good advice at all...
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Warren Buffett overrated?
- Thread starter MarketAddict
- Start date
http://www.nytimes.com/2008/10/17/opinion/17buffett.htmlQuote from MarketAddict:
I was reading an article where he said hold forever and never lose money.... Wow that doesnt sound like good advice at all...
buffett was laughed at by market gurus on et when he wrote this. who is laughing now?
when the super depression happens, and the world government is formed in the chaos, we will know the truth. He will be dead by then and not accountable anymore so it doesnt matter anyway. Tick tock...
he has so much money but he dosent enjoy it
What would be your definition of "enjoy?"Quote from MohdSalleh:
he has so much money but he dosent enjoy it
I'm guessing that since he was pretty much able to follow a lifestyle of his choosing while providing for the future of his entire family AND make a difference to millions of people via donations that he derived quite a bit of enjoyment from that cash.
67 Billion dollars speaks for itself. Yes, I think that methods of investing have forever changed, and for the average investor, buying and holding is difficult and sometimes not prudent. The advantage Buffett has is the best knowledge, information, and resources to make a decision. Buffett can buy the entire company, sit on the board, and make decisions. The average investor cannot hold through a pullback, recession, or depression the way Buffett can.
Let's not forget that Buffett owned Fannie Mae until 2000/2001 when he saw lending standards loosen and sub prime mortgage applications rise, when he sold he shares. He suggests average investors buy index funds because there is no way they can beat the market. This is probably true, however, a more modern portfolio, in my opinion will consist of index funds, high dividend yield stocks, growth stocks, TIPS, treasuries, Alt-A Assets such as managed futures or portfolios such as The Endowment Fund, which is heavy in Alt-A including hedge funds, and commodities, such as gold. 60%-40% stocks and bonds is a thing of the past , but for someone with the buying and holding power of Buffett, it will work because the time horizon is not only so long, but also doable.
Let's not forget that Buffett owned Fannie Mae until 2000/2001 when he saw lending standards loosen and sub prime mortgage applications rise, when he sold he shares. He suggests average investors buy index funds because there is no way they can beat the market. This is probably true, however, a more modern portfolio, in my opinion will consist of index funds, high dividend yield stocks, growth stocks, TIPS, treasuries, Alt-A Assets such as managed futures or portfolios such as The Endowment Fund, which is heavy in Alt-A including hedge funds, and commodities, such as gold. 60%-40% stocks and bonds is a thing of the past , but for someone with the buying and holding power of Buffett, it will work because the time horizon is not only so long, but also doable.
Also, I'd be willing to bet the amount of research he puts into each of his purchases is rather substantial, as opposed to your average investor who buys Coca-Cola because they had a Mountain Dew for lunch.