Almost Half of Warren Buffett-led Berkshire Hathaway’s $365 Billion Portfolio Is Invested in Only 1 Stock::This tech giant has made for a wonderful investment in recent years.
Almost Half of Warren Buffett-led Berkshire Hathaway’s $365 Billion Portfolio Is Invested in Only 1 Stock::This tech giant has made for a wonderful investment in recent years.
He’s 93. He hasn’t gotten by on luck alone for the 82 years he’s been investing (Yes, he bought his first stock at 11). His essential strategy and advice are solid.
That’s the thing with odds though. In any random chance distribution of 100 people, there will be 1 ranked higher than the other 99. We as a society ignore the 99 and focus on the 1 “genius” but statistically someone was going to be in that spot. If he wasn’t lucky he just wouldn’t be famous.
This would assume he’s making random picks and getting lucky. He’s not. He’s the most successful “Value Investor” of which his mentor Benjamin Graham is considered the father of. The advice isn’t a secret, it’s all out there.
It’s not assuming he is making random picks. It’s saying that the stock market is a random walk, which is just a fact. He is making picks based on a system, but if that system was actually proven to find underpriced stocks, everyone/enough people would also follow the same strategy and build that value into the price, removing whatever advantage he once had.
If he’s successful because he’s a “value” investor, why aren’t all of the other “value” investors just as famous and successful? It’s because the difference between two people doing the same thing, is luck.
Other people do. It’s not a get rich quick scheme, so it’s hard to beat 80 years in the market. He avoids a lot of stocks that do very well too. I’m not saying following every move he makes will make you rich, I’m saying his general advice and strategy works.