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But Warren Buffet invests in individual companies using valuation technique to discover under valued companies which the market is ignoring. One peculiar thing
by notastartup 12y ago
But Warren Buffet invests in individual companies using valuation technique to discover under valued companies which the market is ignoring.
One peculiar thing about Warren Buffet is that he has strayed away from technology companies, he's always invested in very stable ideas like brand and other economic moats unlike the tech sector which is susceptible to unexpected disruptions, like two boys working in a garage to build a better search engine. He even stayed clear of Microsoft and seems like it fit his plan of holding onto a good stock forever.
For those that do not know how to come up with a intrinsic valuation of a company, for example, reading through K's and Q's and figuring out if there's discrepancies in what it actually says and what the market thinks, it's best to invest an index, a large basket of companies and you bet your ass that for a country like United States, it's going to go up in valuation, seeing how well aligned the NSA's global surveillance is poised to benefit American corporations, I'd definitely back American companies, although the intrusion into individual freedom and privacy is jarring, I'll play the dirty capitalist, if it means I can make money work for me.
- lutusp 12y ago> But Warren Buffet invests in individual companies using valuation technique to discover under valued companies which the market is ignoring. Yes, this is true, but the possibility exists that Buffet realizes his early success might have arisen from chance, and that his present success arises from the announcement effect (everyone wants to invest in the same stocks he invests in, so he can't go wrong.) I have no idea whether that's so, I won't pretend to have any inside knowledge, but it's certainly true that Buffet has set things up so his inheritors are in index funds and buy & hold, two ideas he has spoken well of over the years.