With utmost respect, Buffett's ideas may not be valid to us, today's common retail investors for the following reasons.
* We do not make big bets like buying most of a company.
* In many cases, his bets require him or his company to run the company.
* He has connections and sweetheart deals that most of us do not have access to.
* We can dump losers and sellers any time we want without public opinions.
* Most of his bets require him to pay extra to get in and get out.
There are exceptions. If you follow him to buy Chinese Petro. (I did) and the Chinese auto company (I could not find any US exchange), you do good.
Contrary to Mr. Buffett's philosophy, I believe after 2000 buy-and-hold is dead. Most books/articles defending buy-and-hold based on data before 2000. The market changes so fast that a good company could not be profitable due to circumstances beyond their control.
I will buy the company whose technology I do not know - but try to find time to understand it. I believe some companies will die eventually like Washington Post he owns unless they move out from the paper product. If I were him, I would sell it after we know internet will replace newspaper to a good extend. It is more fundamental than market timing.
For the past 3 years, my largest account (based on 1/31/11, so a month off) beats Buffett by 100% - his cuumulative profit is 22% and mine is 50%). It could be just luck. I just want to prove a point that we can beat Buffett easier as a retail investor if we try hard and I do not believe in luck. I'm a nobody and remain so, so I do not do it for fame and glory.
If Buffett only handled a portfolio of $5 millions or so, he would beat me year after year. No one including Peter Lynch can make a decent return with Buffett's size portfolio.
* We do not make big bets like buying most of a company.
* In many cases, his bets require him or his company to run the company.
* He has connections and sweetheart deals that most of us do not have access to.
* We can dump losers and sellers any time we want without public opinions.
* Most of his bets require him to pay extra to get in and get out.
There are exceptions. If you follow him to buy Chinese Petro. (I did) and the Chinese auto company (I could not find any US exchange), you do good.
Contrary to Mr. Buffett's philosophy, I believe after 2000 buy-and-hold is dead. Most books/articles defending buy-and-hold based on data before 2000. The market changes so fast that a good company could not be profitable due to circumstances beyond their control.
I will buy the company whose technology I do not know - but try to find time to understand it. I believe some companies will die eventually like Washington Post he owns unless they move out from the paper product. If I were him, I would sell it after we know internet will replace newspaper to a good extend. It is more fundamental than market timing.
For the past 3 years, my largest account (based on 1/31/11, so a month off) beats Buffett by 100% - his cuumulative profit is 22% and mine is 50%). It could be just luck. I just want to prove a point that we can beat Buffett easier as a retail investor if we try hard and I do not believe in luck. I'm a nobody and remain so, so I do not do it for fame and glory.
If Buffett only handled a portfolio of $5 millions or so, he would beat me year after year. No one including Peter Lynch can make a decent return with Buffett's size portfolio.