No. of Recommendations: 39
This might be a good strategy..and it might not.
My personal experience with copying Buffett..is underwhelming. Certainly less than buying an index.
Berkshire works IMO as a complete entity, stock selection of which works collectively as an entire package. Within the context of an overall entity more than twice that size. See where I’m going? Well, I’ve been there. I ain’t going back…here’s why”
I followed Buffett into Guinness and it was a slight loser. Then I followed him into his BIG PLAYS..that must be the answer, right?so I followed him Into Wells Fargo..it was a market performer at best.
But my FAVORITE Buffett follow is one that might never be topped:
A stock in which Buffett bought every share he legally could. Where Munger at Wesco bought every share HE legally could AND where Peter Lynch, at the height of his success..bought every share HE legally could.
Would you like to do something Buffett, Munger, and Lynch all WANTED to do but couldn’t (all limited to 4% ownership)?? Ya, I think so.
So I bought Freddie Mac. Good news is it paid for my new home (nice irony!) And so glad I liquidated the stock for that purpose. It proceeded to decline by 95%! (Buffett & Munger also got out long before but not to buy homes lol),
Lesson. Buy Berkshire, hold Berkshire. Don’t cherry pick the pieces. Most of them are very very ordinary. It’s extraordinary only in its ENTIRETY. Most of its stocks are so so. A very few go through the roof. THAT equals extraordinary performance.
