I still cant believe he sold all of his airline stocks at their lows only for them to come rallying back in the coming months after Covid. He sold Tesla at its bottom too.
How to invest for begginers by warren buffet. 1. Find insider sources 2. Trade with the insider sources 3. Get rich and pretend like you've been studying stocks your whole life...
Don't forget "craft legislation you personally profit from when one of your pals (Obama) is president." To be fair, Buffett was a good value investor way back in the day. So were Graham, Petery Lynch and others. The days of them having an information edge over other investors is over, though. And despite all of Buffet's connections, he's underperformed the market over the last 10 years. Besides general principles that most well-read investors already know, I can't imagine what edge Buffett can give anyone going forward. It's a whole different world than his glory days: algo-run markets, zero interest rates, sky-high valuations, etc. "Buying good businesses you understand" hasn't beaten the market in a long time.
There's one sentence that we could take away from the video. "Only buy stocks in sectors that you understand" The rest is common talk that could come from anyone.
i didn’t know he ever invested in Tesla. Do you have a link for that. Why he sold the airlines was pretty genius in my opinion. First his selling would by definition mark the bottom because he was likely the largest shareholder in multiple companies and he dumped them all within a day. Second his reasoning was that if he owned the airlines the government wouldn’t have bailed them out - the government would have expected him to. And unlike the financial crisis where he was able to cut sweet deals with BAC and GS to do it, he was already invested and would had lost leverage in that negotiation . Remember how he announced he was out like two days after he finished selling. In normal times he wouldnt have done that. He’s so big that his actions create self filling prophecies and he knows it.
I didn't even watch his instructional video. I already know he's going to tell us everything that any other guru would say. "Learn to control your emotions" "Don't buy when the price is high" All though I will say probably 2 things I learned from him that were valuable was "when others are fearful be greedy and when greedy be fearful" and "If you're not willing to spend years with a stock, then why spend 1 minute with one?"
Hmmm, apparently I was wrong. I was positive I read somewhere years ago, before Tesla really took off and became what it has become now, that Buffet had called his investing in Tesla a mistake, as it was not an industry he actually knew which violated his own rules of only buying stocks you know. I scoured search and apparently I conjured up the notion out of thin air.