Except,
once Buffett buys them his supply of cash liquifies the stock driving up its price. His actions drive it up, but less than he wants to pay. Disclosures are delayed, so by the time someone like you knows he bought it, the value effect is almost always gone. Then people with your strategy buy the security, often driving the price up by making it super liquid, to the point it is often over valued. It is the followers that are pushing up the price.
Return is sell price/purchase price-1. The larger the denominator the lower the return.
What you want to do is buy securities BEFORE Buffett. That is easy to learn how to do. Bufffett leads a large corporation, which in practice means that many things happen slower than an individual could do the same thing. You can beat Buffett by six months if you are really strict.
In order to do this, you need to do two things. First, pick up a copy of "The Intelligent Investor," by Benjamin Graham. Treat it as a bible, Buffett does. Second, once you have read this book, buy a copy of Graham and Dodd's "Security Analysis." Do what it says.
Then you can sell to Buffett.
Well, Warren's past should be replicated. But this little movie came out called The 1%. His like, illigitimate daughter who he sorta gave money to who mooches. Or mooched off him then like, joined a cult but survived. She was living in frisco and totally exposed his shinanigans.
I guess he was good at first, then he hit a point in wealth where he basically sold out to the big 5 (families, the rockerfellers, rothschilds, look up the men who made america).
Totally gave them control and he had to still conform to being a douche bag like them. Then confronted by the press he like, frantically gave away all his money out of feeling guilty. Earned tons back, sold his stock and is now on survivalist trading. He's not in it to invest in these companies because 99% of them are fake anyways, shell companies. Yes they work but it's a shell and not actually moral or ethical any more.
So his investments are based upon himself only, maintaining the small amount of wealth he thinks he can live on to survive.
You'd have to have already succeeded to succeed off that strategy. The only reason he's successful now is because people pitty him.
Look at Sheldon Adleson, he's way richer then Warren ever was but warning, he's the chief of the douche bags.
In a nutshell, Warren buys (high) quality and holds for decades.
There is nothing wrong with that philosophy. It has worked in the past, it should work in the future. Nothing about the future is certain.
Go to assetbuilder.com (learn about ETF's) and check out Couch Potato Investing. Diversify and conquer.
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Nothing is wrong with it but its not like you know every buy or sell he's doing and when he's doing it.
Don't copy others. Just create your own pathway.
How about just buy BRK-B?
I'm 25 and I plan to start investing next year. My strategy was to follow Warren Buffet's portfolio that is online. I thought this was a great strategy, because if someone is doing well, why not model their behavior? If I wanted to invent something, I would look to Steve Jobs for leadership. If I was learning to play guitar, I would look to Van Halen for guidance. If I was going to say a speech, I would look to Barack Obama for pointers.
My friend's dad told me that following Warren Buffet's strategy is a bad idea. But why? He said that Warren Buffett's investments shown online are only for Berkshire Hathaway and it doesn't include what Warren Buffett invests in conclusively (saying that Buffett might have insider trading going on..., i guess). He also said that Warren Buffett frequently trades stocks, so it would be a bad idea to follow Warren Buffett's portfolio.
So, what do you think? Is modeling my portfolio after Warren Buffett's a bad idea?
