Strategy of WB, PL, etc:
Each of them had a strategy the main ingredient being to buy low.
Very important to have a strategy, know why something was bought, or else how is one to know what
mistakes were /are being made in order to improve ?
I reckon they never bought an IPO,. with (most often) no record and a 100% debt load at the open. That debt being owed to the new shareholders and the brokers who set up the IPO.
Missed participating in the tech revolution
However,their strategies, applied today, could still be valid but the markets are too volatile to verify that since if the markets drift down, so will their returns while wiser men would have sold.
If todays impatient investors are on longer willing to settle for the lower returns of the diversified portfolios produced, and instead invest in momentum stocks which are touted so highly it would decrease the expected returns of Brk.a for example.
The men being quoted were "Men of the hour", or men of the year, buying wisely in a flat or rising market
and settings traditions which may no longer be the best to apply.
IMO touting the market and diversification, as a place and way to "invest" based on the reputation of a few very select and and rich men, and the fund managers appearing on the Reukeyser Show will continue.
While the really big profits now being made in options, is practically never discussed
Sig (looking for new strategies and investment heros beginning with Bill Gates) |
