My View of Warren Buffet
My view about Warren Buffet is presented here.
It's so interesting that there are such huge differences about Buffett in this tiny group of Stock poll. I just could not resist the temptations about saying a few words about this debate.
(1) It is easy to figure out the winning strategy when the rabbit is over at other side of the mountain. This can be applied to the financial giants like Buffett or Soros. The practical question is if their investment principles can be applied to the current investment environment.
(2) There are always intellectuals trained specifically for the kings (御用文人). These people can always figure out ways to make whatever the king has said about anything the righteous statements. Since the giants like Buffett or Soros have achieved such a high level in the stock market, people can always figure out some logical principles to summarize their investment practice.
(3) It is statistically possible that the achievement made by Buffett is just a probability since there are so many investors have been doing similar things like him. Buffett has also alluded to similar statement just to make sure people would not think him as God.
(4) As long as there are enough people trying independent methodologies deliberately and consistently, one among them will become the next generation Buffett. It's highly unlikely that the next Buffet would have investment principles similar to that of the current Buffett.
(5) It is more rewarding for each of us trying a different set of investment principles if the investment goal is to out-perform the market. One of the sure ways not to out-perform the market is trying to achieve the market return. It should be easy to do this if one can resist the temptation of doing better than the market.
It's so interesting that there are such huge differences about Buffett in this tiny group of Stock poll. I just could not resist the temptations about saying a few words about this debate.
(1) It is easy to figure out the winning strategy when the rabbit is over at other side of the mountain. This can be applied to the financial giants like Buffett or Soros. The practical question is if their investment principles can be applied to the current investment environment.
(2) There are always intellectuals trained specifically for the kings (御用文人). These people can always figure out ways to make whatever the king has said about anything the righteous statements. Since the giants like Buffett or Soros have achieved such a high level in the stock market, people can always figure out some logical principles to summarize their investment practice.
(3) It is statistically possible that the achievement made by Buffett is just a probability since there are so many investors have been doing similar things like him. Buffett has also alluded to similar statement just to make sure people would not think him as God.
(4) As long as there are enough people trying independent methodologies deliberately and consistently, one among them will become the next generation Buffett. It's highly unlikely that the next Buffet would have investment principles similar to that of the current Buffett.
(5) It is more rewarding for each of us trying a different set of investment principles if the investment goal is to out-perform the market. One of the sure ways not to out-perform the market is trying to achieve the market return. It should be easy to do this if one can resist the temptation of doing better than the market.
posted by Unknown at 10:02 PM
0 Comments:
Post a Comment
<< Home