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> He would probably have never invested in Netflix, or Facebook, or Google. Yet any investor who did made a killing. Buffett's strategy is to avoid losses -- n
by tc313 9y ago
> He would probably have never invested in Netflix, or Facebook, or Google. Yet any investor who did made a killing.
Buffett's strategy is to avoid losses -- not to worry about missing out on possible gains. He believes you avoid losses by investing in companies with a long, successful track record of doing the same thing for many years and that are likely to continue doing that same thing for many years into the future.
So, it's not that Buffett doesn't "get" technology, he just can't make intelligent guesses about what tech companies will be earning 10 years from now. He sticks to his circle of competence and it works.
- charlesdm 9y agoWhich is fine. He's a great investor on his own terms. But the complete counterexample to Buffet is George Soros -- a different way of thinking and operating. Both lines of thinking clearly work for some people.. your investment style is tied pretty closely to your personality. There is no perfect solution, and everyone has to find their own way. I would never put money in a railroad or an oil company, because I can't properly assess what drives the stock price and which unexpected issues might pop up. I can more easily do that with tech.