Whither the markets?

[Southie]

Re: Whither the markets?

@kakaballi

Warren Buffett is thrown around a lot. He did not make money ‘trading stock’. He made money backing and buying controlling interest in start-ups and smaller companies with potential . Now his money attracts more money.

Here’s a snippet from last three years:

2013: Warren Buffett ready for a stock market crash with a record $49bn in cash « ArabianMoney
2014: WARNING: Stocks Will Collapse by 50% in 2014
2015: Warning: Stocks Will Collapse by 50% in 2015

Indeed he did that.

But let us not forget he has and or had huge positions in KO, PG, WFC and other big boys. In other words his stock picks didn’t too badly either.

His overall approach is essentially same as Benjamin Graham. Except he eased up on the price to book value metric.

Bottom line - he preaches not overpaying for a security. And being on top of financial statements. (In addition to ensuring company will be around for a while.

By don’t lose capital he means make sure u don’t overpay.

I would not use “trading” stocks - rather buying good stocks at good price. And holding on for long term.