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Investing with the Trend or Cause Waves like Buffet? Response to a Question on our Hubpages

Apr. 04, 2011 3:20 AM ET
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by Jeffrey Lin, MarketHEIST

On our article "Investing Psychology Starts in the Men's Locker Room," reader DavidHill76 asked a very common and very important question in many investor's minds:
"Good advice but what about Warren Buffet?  Well, I guess he's the trendsetter rather than an outlier."

Why are we highlighting this specific question?  Warren Buffet is a great inspiration and public figure for investing.  A great example of acheiving the American Dream.  But we want to point out to those of you who look at Buffet's success now or look at his history and trying to replicate it.  What you see now is the end product of meticulous years of hard work, the right connections, tons of failurs and learning experience, and working with what he had at each stage of his life and success.  He didn't start out as a billionaire and at that time, if he had tried to make money as if he had billions of dollars, he probably wouldn't have succeeded.

Same with the majority of us investors, both professional investors managing millions and individuals like us.  Buffet plays a different game than us and the majority of the investing world.  He plays the game that only investing "Whales" can play, along with countries' sovereign funds and global banks like Goldman Sachs.  It's like opening a small cafe and trying to do things like Walmart or Target.  You just don't have the resources, marketing power, or stores!  Buffet is big enough to negotiate terms or affect businesses, we are not.  But as they say, giants have strength but those of us that are smaller can be more nimble and grow faster.  We have to play our game, which is that of riding the trends and waves that the Whales make.  When we do that, we can eventually get bigger and make more influential investments, then move on and aim to become a Whale like Buffet.

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