Did you notice the above comparison is Berkshire Hathaway Inc. vs S&P 500? S&P is frequently referred as the return from market performance. Many people who invested individual stocks are highly likely will also put a large proportion of their money in index fund to balance the risk and for diversification. If they cannot beat the market those people who also invest in individual stocks will not be stupid to take more risk. Why would they want to take the risk for nothing??
Is index Fund, S&P 500 a casino?? But some people call the stock market is the largest casino on earth.
I didnāt say that the s&p500 index fond is a casino. CM and WB do not strive to have the highest yield, but a constant yield for as long as possible. Critics who donāt like their views on fast-growing stocks or bitcoin often take their low yield as proof that CB and WB are not good investors. These critics stay there than time, in that period they have a much better yield than WB and CM, then step on a mine, lose everything and withdraw from the public.
As I mention before I have a very much respect to CM & WB especially in value investing. It is just that I do not blindly follow every word they are saying.
What I said previously is that people fail to see that you should not be expecting the people similar age of CM & WB to have interest to learn and therefore have sufficient knowledge to make decision about Blockchain, what blockchain could do to reduce the transaction cost. In addition, you might want to add high growth stocks in technologies that will improve efficiency, Biotech that could cure diseases that are not curable in the past.
I have shown examples of what they are saying about BTC in the poster above. Another example recently is that when they sold their Airlines stocks with a multibillion USD loss.
But making money in the stock market is not just LT investing, value investing, people might want to try to invest/trade in high growth, volatile stock, assets using momentum. The availability of near zero platform such as T212, RH, Weibull, eToro, free Trade, etc in the recent year will give the chance many retails investor to take parts of it. While vast majority of people cannot beat the market, reasonable number of retail investors/traders could beat the market. People who have done that for a few years are not naĆÆve to take more risk if their return is less than the market.
What do you think cause the growing popularity of retail trading platform such as T212, RH, Weibull, eToro, free Trade, etc. If they all sort of throw the money into index fund and forget it then these new challengers investing/platform will not persuade people to switch platforms. Let alone growing popularity of CFD, Option Trading, Spreadbetting, etc.
Also, some Fund Managers just starting less than 10 years ago.
You also have seen WB & CM performance in the last few years and any blunders they have made selling Airlines stock. Including comment on BTC. WB & CM makes a lot of fortune far beyond 10-20 years ago where value investing is more relevant before the digital revolution featured in High Growth stock started taking effect.
Thanks for the reply, I appreciate an argumentative discussion from which something can be learned.
But we are talking about different things. We both know that there are investors/traders who have a higher return than the WB/CM/BRK, if you went all in tsla with the entire portfolio two years ago, you would have a significantly higher return than the WB. But you probably wouldnāt be here in 10 years.
As soon as I catch the time I will look at the graphs, although at first glance I see that there is no steady growth in the last 30+ years, although they are mostly WB style copies with minor modifications.
Well this has turned into a trader vs investor thread it seems lol, I donāt recommend trading BABA as many western investors are even less rational than normal when it comes to Chinese equities.
Donāt judge anyone on less than 10 years I would think, ideally longer than that.
The key for me is to not have a permanent loss of capital, and to somewhat enjoy myself. Trading would not tick either box for me but BABA does in terms of long term holding at the prices I paid and at the weighting in my portfolio is within my plan.
Same with you, although I have been holding a BABA big bag for more than a year now as i keep DCA but keep dropping I will not sell a single BABA until it turns green. Fundamentally there are very strong with a lot of cash. Also, they have a lot of innovative ideas.
I have no doubts that they will come back if the C.C.P do not do anymore crazy thing like they did in the past few months.
You need to have steady growth to take your profits to deathbed. I doubt itād work if you went all in risky stocks, baba included, although it make up 3-4% of my portfolio and I have a positive outlook.
Well. Anything could happen who knows. but imho it is highly unlikely.
The cause of price drop is because of future earning guidance. This is normally due to overreactionā¦ You might see tomorrow they will start bouncing back again.
I donāt believe fundamentals are in play here, but chart looks very bearish, even tho I do not think TA is holy grail. It clearly pointed to lower lows earlier, it sure looks the same to me.
Not just this, if you started listing off the issues the list would never end.
Also thereās plenty of opportunities in other markets even if you take out American markets. Iāve already got a Japan short list of companies to buy once we get Japanese exchanges.
The political risk its always a risk when investing in anything. Most people ignore or donāt know the political risk, because in the other (ādevelopedā) countries political risk isnāt so high or visible.
Did you forget the numerous tweets from Trump, that rattled the markets.
We could even include the monetary policy (Central Banks) as political risk, just see the examples of Turkey. Or when bad or confusing communication from Central Banks tanks the financial markets (e.g. taper tantrum in 2013, 4Q2018). Or the actual Italian PM, Mario Draghi that saved the EUR and Euro Area, in 2012 when he was the ECB President, just by giving a simple statement.
You need to have steady growth to take your profits to deathbed. I doubt itād work if you went all in risky stocks, baba included, although it make up 3-4% of my portfolio and I have a positive outlook.
