Many investors pile into the Buffett owned to piggy back on his success. If he were suddenly not an investor in the rail stocks for example, I believe other investors would pull out as well. That does not change how great a company is, but it sure affects the stock price.
Four Ways to Invest in Buffett's Berkshire Hathaway [View article]
I think creating a portfolio is probably the best way to go. However, Buffett has been lightening up on some of his holdings, which means those are probably not the right ones to own. Two that I can think of right away are HRB and BUD. Instead, it is better to buy stocks in which he has recently built up his stake or is currently adding to his stake. Such stocks are COP, JNJ, USB, USG and PKX.
No one will ever argue that following Buffet's move is the wrong way to go. Individual investors follow smart money one way or another. The whole "technician theory" is based on following smart money and I believe Buffet is smart money. BTW - this post is not an analysis. Its an observation.
Warren Buffet's Portfolio [View article]
Four Ways to Invest in Buffett's Berkshire Hathaway [View article]
Warren Buffet's Portfolio [View article]