What is the logic behind me?
Buffett is a must study. For those who have read my books “The Rules of Super Growth Stocks Investing” and blogs should find that investors who want to succeed should find a successful investment master whom they admire, and find out all the possible reasons for his success. After finding it, studied it carefully and thoroughly. After several years of doing this, investors will be able to succeed. But the prerequisites are the following:
- The person you are looking for must be very, very strict. Buffett, Peter Lynch, and Keynes are all good candidates for me. If you really don’t know which one you are looking for, or if you are an investment novice, your knowledge is limited. I suggest you filter these three first. Pick one out of them — yes, one is enough, quality is important than quantanty.
- If you still have no idea, pick Buffett.
- We must persevere and carefully study all his thoughts, writings, behaviors, ways of thinking, and all important stories. If there is no related books about him, believe me, he or she is not worth your study. If you have a biography, you must first read it several times.
- As far as the investor is concerned, the person’s affairs, regardless of size, must be studied; of course, including the story of his failure.
What Buffett makes me admire
The following points make me admire Buffett:
- 80+ years of amazing returns on investing speak for themselves. March 11, 1942: He buys three shares of Cities Services preferred stock at a cost of $114.75, draining Buffett Jr.’s entire savings.
- Use all understandable vernacular to explain the truth of investment.
- Willing to selflessly disclose his investment methods and make them public.
- Consistent with words and deeds, can withstand repeated verifications, checks, and comparisons by investors; and are willing to openly and frankly face and share his mistakes.
- Have the ability to find the most useful investment method among the many investment methods in the vast ocean of investment; and with the evolution of time and based on his own experience, modify the investment method he chooses and use (what he chooses and adopt was good enough, maily Graham’s method, please refer to my other blog post “Problems with cigar butt investment” for details)), and “re” develop a set of investment methods that are almost leak-proof and suitable for most people.
- His investment methods can stand the test of time and the market; I personally believe that after a hundred years, there will be countless people who will continue to study his lifelong investment philosophy.
What trolls and haters say about him
The points listed above may sound ordinary to you, but none of them are easy. Many people are accustomed to knee reaction:
Buffett is too common to be creative, can you mention others? What I want to say to this kind of responder is — since no one can refute his achievements, Buffett’s status has been proved, why should I choose someone else. The word creativity is useless in investment. Human beings have this inexplicable behavioral pattern. However, people are not prone to use simple and reliable methods, instead to try everything possible to find unproven investment methods. As they grow older, they wake up too late and lose the money that should be saved. But when you awakened, your loss was not money, but compound interest — that is, the probability of investment success has been reduced a lot.
The second is the hater mentality, looking for all kinds of specious reasons to refute Buffett’s success, like:
- He is a rich man with large funds and is not suitable for retail investors.
- He must have insider information, but don’t disclose.
- He is not that powerful, and he has lost money too!
- His investment methods are outdated and can’t keep up with the times.
- He was just lucky!
If you agree with any of the comments made by the trolls and haters on Buffett above, then I can only say that it is very difficult for you to succeed in investment.
- “Why I prefer growth stocks instead of value stocks?”
- “The past and present of value investing“
- “Problems with Cigar Butt Investment“
- “The commonalities of Buffett portfolio – cheap, fixed income, repurchase“
- “People believe successful investors are survivorship bias cannot succeed“
- “Why Buffett deserves further study?“
- “Reading is irreplaceable and necessity of for investors“
- “Are analyst reports useless?“
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