11–20 of 45 posts
Earlier quoted context omitted.
Buffett has a huge investment in apple. The tech comment is outdated
Despite that he is still underinvested in tech looking at how big a portion tech is now of the S&P 500. Mostly because he does not understand it if he did according to his own rules he would have even larger investments in tech.
Earlier quoted context omitted.
Buffett has a huge investment in apple. The tech comment is outdated
Despite that he is still underinvested in tech looking at how big a portion tech is now of the S&P 500. Mostly because he does not understand it if he did according to his own rules he would have even larger investments in tech.
What leads you to believe that he doesn't understand it? I mean, how many tech companies failed/are failing badly?
It's easy to single out Microsoft as an example of a success story, but it's even easier to pick failure stories. Perhaps Warren Buffet does well smelling out those?
Earlier quoted context omitted.
Despite that he is still underinvested in tech looking at how big a portion tech is now of the S&P 500. Mostly because he does not understand it if he did according to his own rules he would have even larger investments in tech.
> Mostly because he does not understand it (...) What leads you to believe that he doesn't understand it? I mean, how many tech companies failed/are failing badly? It's easy to single out Microsoft as an example of a success story, but it's even easier to pick failure stories. Perhaps Warren Buffet does well smelling out those?
People dont understand the subtle art of language.
I, on the other hand, have always assumed that Buffett made the "I don't understand" remark with typical self-deprecating-but-knowing Buffett charm — as in, "All you people piling into dot-com stocks must be much smarter than I am, because I just don't get it!"
In other words, I believe that, in typical Buffett fashion, Buffett understood everything he needed to understand about technology in the late 1990s, which is that technology investors had gone stark raving mad.
https://www.businessinsider.com/why-buffett-doesnt-invest-in...
I get completely different numbers (although the tldr is no less alarming). Does someone want to check my work? https://gist.github.com/RantyDave/41ac164cfcf527a91d3b97c8dd...
I get completely different numbers (although the tldr is no less alarming). Does someone want to check my work? https://gist.github.com/RantyDave/41ac164cfcf527a91d3b97c8dd...
That brings you into alignment with the article.
Also, I know some "celebrity traders" in Poland who advertise their IKE (think of it like a Polish version of Roth IRA account), where out of 170,000 PLN cash savings over 10-12 years they can get 1,800,000 PLN (for the average return of 37% per year) - how's that for beating the market?
As a huge fan of Buffett, I must point to the fact that can materially change this comparison in the years to come: - stock market returns were abnormally high for the past 15 years - Berkshire is sitting on a huge pile of cash, ready to invest This is a very similar scenario to what people were saying in 1999 - Buffett is done etc. I highly recommend reading his biography - "The Snowball" and especially the preface…
Earlier quoted context omitted.
Despite that he is still underinvested in tech looking at how big a portion tech is now of the S&P 500. Mostly because he does not understand it if he did according to his own rules he would have even larger investments in tech.
> Mostly because he does not understand it (...) What leads you to believe that he doesn't understand it? I mean, how many tech companies failed/are failing badly? It's easy to single out Microsoft as an example of a success story, but it's even easier to pick failure stories. Perhaps Warren Buffet does well smelling out those?
So it seems that Buffet, ironically, does not follow his own advice of simply buying an ETF and holding it. Also, I know some "celebrity traders" in Poland who advertise their IKE (think of it like a Polish version of Roth IRA account), where out of 170,000 PLN cash savings over 10-12 years they can get 1,800,000 PLN (for the average return of 37% per year) - how's that for beating the market?
Find another country which will have the same growth for the next 20 years, invest there, and you'll see similar results.
As a huge fan of Buffett, I must point to the fact that can materially change this comparison in the years to come: - stock market returns were abnormally high for the past 15 years - Berkshire is sitting on a huge pile of cash, ready to invest This is a very similar scenario to what people were saying in 1999 - Buffett is done etc. I highly recommend reading his biography - "The Snowball" and especially the preface…
You either beat the market or you don’t. It’s relative. He could lose money but if he loses less than the broad market, he outperformed.
And sitting on a pile of cash is a negative, a lost opportunity.
That said 20 years is arbitrary, however it’s not an insignificant period of time. It’s two decades!
But my final point is that Buffet isn’t an investor in the way regular people are. He doesn’t passively put his money into companies. He often buys controlling stakes in a company - either taking them over entirely or getting a board set where he can change the way the company operates.
Comparing BH return with your average Joe is like comparing a casual gambler with one who does it professionally and often find edges nobody else has.