It's Warren Buffett, not Buffet. A buffet is what you eat at.
Warren Buffett indeed got rich off of penny stocks. You are dead wrong, as usual.
Here's a link to the entire book:
Warren’s business jumped another leg upward. He could now land bigger positions in larger
stocks. In his personal portfolio, he still played with things like the “penny” uranium stocks that had been in
vogue a few years earlier when the government was buying uranium. These were now fantastically cheap.38
Warren bought companies like Hidden Splendor, Stanrock, Northspan. “There were some attractive
issues—it was shooting fish in a barrel. They weren’t huge fish, but you were shooting them in a barrel. You
knew you were going to make good money. It was minor. The bigger stuff I was putting in the partnerships.”
glenbradford.com
"One of his favorite sources was the Pink Sheets, a weekly printed on pink paper, which gave information about the stocks of companies so small that they were not traded on a stock exchange. Another was the National Quotation book, which came out only every six months and described stocks of companies so miniscule that they never even made it into the Pink Sheets. No company was too small, no detail too obscure" (page 173-174)
"The Pink Sheet quotations for stocks not listed on the New York Stock Exchange were stale the moment they
went to print. Buffett used his Pink Sheets merely as a starting point for the telephonic bazaar in which calls
to numerous brokers might be required to make a trade. He was a master at working this system through his
brokers. The lack of a publicly posted price helped reduce competition. Someone who was willing to call
every market-maker and squeeze them mercilessly had a meaningful advantage over the less energetic or the
more fainthearted."
"Buffett and Cowin used to call each other weekly when the Pink Sheets that listed small stocks came out, and compare notes. "Did you get that one?" "Yes! I bought that, that's mine!" -- both feeling like winners when they had picked the same ones." (page 194) |
