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About Warren Buffet: First he invested in insurance companies. So you buy an insurance company for $1B - you another few billions to invest on their behalf, wh
by petra 6y ago
About Warren Buffet:
First he invested in insurance companies. So you buy an insurance company for $1B - you another few billions to invest on their behalf, which greatly increases your return rate.
Secondly, he has a strategy to often invest in private companies, leaving old management in place, and hold for a long time, and benefit from profits, not from stock changes(means he can hold the company for the long time).
So for private companies, one major reason owners prefer him - his that this business is their "baby" so even after cashing out, they still get to manage it.
This is unlike what most private equity investors do.
So when he goes to make a deal with those companies, there's little competition from other investors, so he can buy at a lower price.
So he just seems like genius stock picker, but he really isn't.
As for predicting who in tech will become profitable ? i doubt that someone will share that information freely.