k9s-4-k8

Is Buffett Really Losing His Touch?

I think too much expectation has been placed on Buffett. Clearly, he has never had quite as much influence as he is enjoying today. But with that, our ears are perked up to hear anything he says. When he stepped up and made the much ballyhooed investments in Goldman Sachs and General Electric, much was made about the most favorable terms he received. Nothing has changed regarding the terms except that his short term timing has somewhat tarnished his investments. Warren Buffett isn't a momentum trader, he's a value trader. His favorite holding period is till death. He has made plenty of value investments in the past that looked bleak before they reemerged to produce great gains. He hasn't lost his touch. People are just mixing up value investing with momenum or growth investing.