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September 09, 2008


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Parade magazine had a nice write-up on Buffet this past Sunday as well. A couple interesting stories on how he started making money.

Kevin -

I saw that too. I'll be commenting on it in a future post.

The key to Buffett's success (in my opinion) is his ability to find under priced companies that no one views as bargains. I try to emulate this by spending hours each day researching stocks that have recently taken a big hit and sell when traders bid the stock to back to normal levels or in some cases, sell after a stock reaches ridiculous levels.

You know my stance on index funds, but they're perfect for busy investors (like yourself) who don't have the time to do their own homework or find the stock market more boring as whales humping on the Discovery Channel.

He's 100% lucky and gambling money the way he does is not a recipe for sound personal finance. Even index funds assume the value of the stock market will rise forever, a dubious assumption indeed.

That's not to say that what Buffet or any investor is wrong in what they do, but let's recognize that it's all a gamble and even "geniuses" like Buffet are riding the tide of an efficient market and thus are not responsible for their successes.

Definately agree with #3. I've always done badly listening or reading the "experts".

And I agree with your comment to #1. It does take a great deal of time.

I enjoy reading about Buffet and I like his comments about #3 and Mr. Market who is trying to play you every single day.

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