I heartily congratulate jhg on finally understanding Buffett investing, though he doesn't know how much he understands it because now he is ridiculing Buffett himself. Not personally, Buffett made him money. But basically the last post ridicules HOW Buffett made him money.
Substitute "Warren" for "James" in that last post and you've got something Buffett could have written himself. Imagine, the guy made $30 billion on such an idiotic strategy. I am not being abusive here, I am really amazed. This is an absolutely perfect description of how Buffett got rich. What do you think Coke looked like to everybody else when Buffett bought it? What did American Express look like when Buffett bought it? What did the entire U.S. market's future look like when Buffett bought Washington Post? Like an "old, sick monkey"? What will Microsoft look like if I get my shot? What will AOL look like if I get my shot? What did Intel look like the two times I DID buy it just before easy 50% gains (one of which became a triple and the other is still counting)? Have I made myself clear? Alright, lets just repost it:
<<In the book of James 34:14 we read--
"There was a wise old owl, much like James [HIS NAME IS WARREN, AND I WISH JAMES WERE MORE LIKE HIM], very patient and also very irritable when his feathers were ruffled. [ACTUALLY WARREN JUST LAUGHS]
And it came to pass that the owl set off in pursuit of a gorilla.
He saw a young and growing gorilla but he would not buy it because it
was immature and unreliable and growing too fast. [AND UNPROVEN AND OVERPRICED BY A FACTOR OF 300%]
He saw a mature gorilla in its prime, very large and thumping his chest, but it was too expensive and he did not buy it. [BECAUSE IT WAS OVERVALUED BY 100%]
Lo! he had a new strategy, wait until the mature gorilla wanders away
from its natual habitat, has an accident, becomes ill and falls down on the ground whimpering. Then buy it" [AH, NOW THE PRICE IS DOWN AND THE BUSINESS IS STILL THE SAME. HMM, I CAN BUY IT BELOW WHAT ITS WORTH WITH LITTLE RISK. NOW THAT SOUNDS INTERESTING...]
There you have it. Buffettology as taught in the book of James [KIND OF THE SAME THING AS YOU WILL READ IF YOU EVER OPEN ONE OF THOSE ANNUAL REPORTS]--- be very patient, be very, very cheap, and buy old, sick monkeys. What a hoot!>>
[AND THE MORAL OF THE STORY: WARREN BUFFETT HAS MADE $30 BILLION OR SO OUT OF THAT "HOOT". WHAT A HOOT.]
And yes, I promised not to respond to jhg any more, but this one was just too perfect. This one was fun.
JJC |
