Ricard

Buffett's Lessons: More Appropriate than Ever

I would counter that this is true in the 'short term' when everyone votes with their pocketbooks. Right now, things are awful, so people are voting accordingly...however, that is usually the best time to buy for the long term. In that sense, macro events trump technical investing handily, but not necessarily fundamental value investing.

Anyone who bought in the dips the past year has probably still kept multiples of their original investment. That is telling. Myself, I was terrified while doing so, but seems I had good company - Grantham wrote this piece shortly after (included the SA link in case you can't access the GMO website):

seekingalpha.com/artic...


To evaluate Buffett's style requires scoring it on his timetable. If he fails on the long term, and touts himself as a long term investor, then something is wrong. For this crisis it is too early to tell. For the last one, one could make a serious argument that he should have sold his stocks pre-2000 and re-evaluated his portfolio. Still, relative to tech funds, and now relative to value funds weighted in financials, and even compared to the S&P 500 for the past 10 years, he has done very well. I think Buffett has passed his own trial by fire, and walks the walk.


On Jul 29 02:11 PM Larry House wrote:

> I too have gone back to the bookshelf and pulled down the Graham
> & Dodd Security Analysis. A key point, seemingly overlooked
> today, is the importance of the macro environment in analyzing the
> market, a sector, or a company. A good company can be held in check
> by the surrounding climate. Buffett's principles are sound, but
> his portfolio was not spared in the downturn. Macro conditions trump
> company fundamentals.