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As I have pointed out before, "deep pockets" is actually a disadvantage

by tyn 18y ago

netcan 18y ago
When they're that deep it is. But enough to buy a controlling stake in mid sized companies, that not. Happy middle's where you want to be.
13ren 18y ago
Yes. Warren Buffett has gone on record saying that if he only had a million dollars to invest (as opposed to umpty billion dollars), he was sure he could double it in a year. His problem is that there just aren't that many multi-billion dollar investments around, and those that are, are well known, and therefore accurately priced. Maybe also, for the same reason, it's hard for a massive company to keep growing (a smaller co has more room to grow). With a million or less, he could assess the small companies that aren't covered by analysts and so on, to find one that was (1) great (2) cheap The lack of money is not the deficit that stops you (and me). Mostly, it's effort, and self-confidence in your own considered opinion when it is contrary to everybody else. To buy when others sell - because you've done the research, and trust your judgment. It's mostly an emotional or moral quality. If your judgment is wrong, you have a lovely learning experience that cannot be obtained in any other way (and Warren Buffett has had that experience).
- tlrobinson 18y ago
  He should have a little fun and set aside a million bucks to try to double each year. It's not like he can't make smaller investments just because he has billions of dollars. Of course if he announced which stocks he picked at the time he purchases them the price would probably increase. Heisenberg and all that... I often wonder if people like Jim Cramer end up manipulating the market just by talking publicly. And is it illegal? If Cramer says "I just bought such and such stock and think it's a great buy", and the price goes up because of it, and he sells his shares for a profit, is that illegal? He simply stated a fact and his opinion. Where is the line drawn?
  - imgabe 18y ago
    I think the SEC has rules about when people like Jim Cramer are allowed to buy and sell stocks that they talk about publicly. He wouldn't be able to buy a bunch of shares of Company A, then go on TV the next day and say what a great buy it is, then sell it when it goes up the next day.
  - anamax 18y ago
    > He should have a little fun and set aside a million bucks to try to double each year. It's not like he can't make smaller investments just because he has billions of dollars. The Berkshire Hathaway stockholders might object. It's a dumb objection, but it's probably enough to get past summary judgement.

As I have pointed out before, "deep pockets" is actually a disadvantage

by tyn 18y ago

As I have pointed out before, "deep pockets" is actually a disadvantage

When they're that deep it is. But enough to buy a controlling stake in mid sized companies, that not. Happy middle's where you want to be.

13ren 18y ago

Yes. Warren Buffett has gone on record saying that if he only had a million dollars to invest (as opposed to umpty billion dollars), he was sure he could double it in a year. His problem is that there just aren't that many multi-billion dollar investments around, and those that are, are well known, and therefore accurately priced. Maybe also, for the same reason, it's hard for a massive company to keep growing (a smaller co has more room to grow). With a million or less, he could assess the small companies that aren't covered by analysts and so on, to find one that was (1) great (2) cheap The lack of money is not the deficit that stops you (and me). Mostly, it's effort, and self-confidence in your own considered opinion when it is contrary to everybody else. To buy when others sell - because you've done the research, and trust your judgment. It's mostly an emotional or moral quality. If your judgment is wrong, you have a lovely learning experience that cannot be obtained in any other way (and Warren Buffett has had that experience).

tlrobinson 18y ago
He should have a little fun and set aside a million bucks to try to double each year. It's not like he can't make smaller investments just because he has billions of dollars. Of course if he announced which stocks he picked at the time he purchases them the price would probably increase. Heisenberg and all that... I often wonder if people like Jim Cramer end up manipulating the market just by talking publicly. And is it illegal? If Cramer says "I just bought such and such stock and think it's a great buy", and the price goes up because of it, and he sells his shares for a profit, is that illegal? He simply stated a fact and his opinion. Where is the line drawn?
- imgabe 18y ago
  I think the SEC has rules about when people like Jim Cramer are allowed to buy and sell stocks that they talk about publicly. He wouldn't be able to buy a bunch of shares of Company A, then go on TV the next day and say what a great buy it is, then sell it when it goes up the next day.
- anamax 18y ago
  > He should have a little fun and set aside a million bucks to try to double each year. It's not like he can't make smaller investments just because he has billions of dollars. The Berkshire Hathaway stockholders might object. It's a dumb objection, but it's probably enough to get past summary judgement.