Has Buffett lost his grip?

[Phaedrus]

Over the 34 years from 1965 - 1998 Warren Buffett averaged 24% annual return and underperformed the S&P500 Index only 3 times. Impressive.

From 1999 - 2005 Buffett has averaged only 7% annual return, underperforming the Index for 3 of those 7 years.

It appears that Buffettology does not work as well as it used to.

[Enumerate]

Phaedrus! What have you done?

The last thing we need is another thread on politics or religion.

(Buffetology, Buffetism ?!?)

[Snow Leopard]

First you have a go at Snoopy and now Warren Buffet!
And you launch your threads in the NZX forum instead of the more appropiate Investment Strategies.

I wonder how worried Warren is with his 'underperformance'?

[duncan macgregor]

PHAEDRUS, behave yourself, you and i both require his followers to make our systems work. Look at some of the underperforming dogs his disciples hold. In other words let sleeping dogs dream on.
macdunk

[Enumerate]

THE BERKSHIRE PRAYER

Our Warren, who art fully invested
Cashflow be thy game
Thy returns will come
Thy portfolio will hum
With careful stock picking and long term investment

Let us reject interesting opportunities
Rather than over-leverage our balance sheet
As we shall construct our portfolio, for the long term

And lead us not into temptation
But deliver us from losses

For thine is the portfolio
The return
and the gain
for even and ever

Amen

[craic]

A simple equation. Buffet makes lots of money - then people ask him how - then he tells them - then they are all chasing the same rabbit. Its the same problem that applies to all endeavours, for some to get rich, some must get poor. The secret of success on the markets is to know something that others don't know - and what has buffet got left? Every time he has f arted in the past few years, someone has an alysed it.

[Enumerate]

The wonderful thing about the stock market is - wealth is being created by vibrant businesses - theoretically, everyone could get rich!

In this ideal scenario, of course, some would get rich faster.

What Buffett rails against is inept management and the Wall St trader mentality. Both of which cost investors money.

His system is to acquire a temprament to avoid the pitfalls in what historically has been a wonderful place to invest money!

[Bel]

Top reply Enumerate.

[lanenz]

quote:Originally posted by craic

A simple equation. Buffet makes lots of money - then people ask him how - then he tells them - then they are all chasing the same rabbit. Its the same problem that applies to all endeavours, for some to get rich, some must get poor. The secret of success on the markets is to know something that others don't know - and what has buffet got left? Every time he has f arted in the past few years, someone has an alysed it.

And the analysts will now probably realise that Buffet sh't stinks just like yours and mine.

The wonderful thing about the stock market is - wealth is being created by vibrant businesses - theoretically, everyone could get rich!Enumerate. This sounds just like MLM. If every jumps in then everyone can make some money. Its just that some will get richer quicker than others.

[duncan macgregor]

quote:Originally posted by Phaedrus

Over the 34 years from 1965 - 1998 Warren Buffett averaged 24% annual return and underperformed the S&P500 Index only 3 times. Impressive.

From 1999 - 2005 Buffett has averaged only 7% annual return, underperforming the Index for 3 of those 7 years.

It appears that Buffettology does not work as well as it used to.

There is a very good reason for this poorer return if you think about it. The bigger he got the less his average. Before we critisize his methods, we should look at the bigger picture. A TA system is unworkable at his level. Phaedrus for instance regardless of how good an investor he might be, can never hope to compete with WARREN. The people that copy warren appear to miss the higher returns that the TA people acheive for a very good reason.
WARREN is to big to get out of a share, which is a great handicap, compared to our level of investing.
WARRENS disciples forget this and like him ride the share down without any sell system in place.
Take the good bits out of WARRENS methods and leave his handicaps we dont have them. There is nothing wrong with BUFFETOLOGY that a sell system wouldnt fix. macdunk