You have lots of instruments under your management and you do charting for all of them? Or you rely on a computer to do programed technical analysis unsupervised? And inevitably, you order will move the price because you are a big player then. The noise will easily affect the tech-oriented program's decision making...
So what. As long as he has deep pocket, once the crisis is gone, he will be up again, reaping much more profit than you and me with small accounts. The market can always stays insane for longer than you can survive; but for Warren, maybe he can survive the market insanity.
I feel I am exactly doing critical thinking and you probably have never thought about this question: why aren't the big investors technical analyst?
Critics of technical analysis include well-known fundamental analysts. For example, Peter Lynch once commented, "Charts are great for predicting the past." Warren Buffett has said, "I realized technical analysis didn't work when I turned the charts upside down and didn't get a different answer" and "If past history was all there was to the game, the richest people would be librarians.
Paul Tudor Jones and Bruce Kovner both have $50billion + hedge funds. Both of them say that technical analysis is an important part of the method they use.
Any more details about how they started with technical analysis and how they apply technical analysis to management their 50B hedgefund?
Yes, but you, of all people, are not going to start out at 10-billion in assets. You will have to "scale" your way up to it.
You have to be somehow affiliated with Harvard University. Kovner graduated from there and Tudor refused his acceptance to the MBA School. How do you "fit in" there?
These 10 billion funds don't trade the float, they buy the entire company and when they do trade, they call their broker and sell by the phone to another party, it's not in the open market. They have all or nothing big blocks minimum is 25% of outstanding shares at set price or no deal. a real investor wants 100% of outstanding shares and take the company private. owing 5% or less of any company is 'minority shareholder' or silent partner in a business.