Our elephant gun has been reloaded, and my trigger finger is itchy
The main idea Mr. W.Buffett submitted in the letter to Berkshire shareholders on Saturday is INVEST IN AMERICA! Berkshire Hathaway will invest $8 billion this year. Wow, it sounds like a Quantitative easing #3 (QE3).
We can’t ignore this message. So we have decided to invest in our American portfolio too. That is to say we are planning to increase portfolio by adding new positions and/or adding more stocks to existing positions.
Another thing, which we fully support the idea of Mr. W.Buffett’s notion – the market is always uncertain. But there is a big difference between Berkshire and us, individual investors. We do not have enough money (much money) to invest and wait, for example, forty years. If you have invested $100 000 the financial crisis can be disastrous for your portfolio.
But if you have invested a billion dollars and have good team, you’ll see the opportunity to buy more stocks. Once again, crisis for individual investor isCRISIS; crisis for Buffett is OPPORTUNITY.
But there is a way to manage your investment portfolio in all conditions of the stock market. First, invest wisely. Mr. W.Buffett is a wise investor. So don’t look for something more… You have a very good example how to choose stocks for you portfolio.
Second, don’t invest all you money at once. Create your investment portfoliostep by step. You’ll not earn huge money by this way, but you’ll earn surely. The stock market doesn’t harm prudent investors.
Look at W.Buffett again. Over the last 20 years the price of BRK-A has grown from $6 750 to $130 000, a rate of 16.67% compounded annually. Not so much. But he’s a billionaire.
Where is that guy who suggested you 1 000% per month by investing in penny stocks? Do you remember him? Maybe you saw him at Forbes’ cover???