Warren Buffett explains how you could've turned $114 into $400,000 with a simple long-term investmen

Discussion in 'Wall St. News' started by trader99, Apr 25, 2018.

  1. Arnie

    Arnie

    Technically you are right, but time is better than most of the edges people think they have.
     
    #21     Apr 26, 2018
  2. Lots of traders think they have an edge, or hope they can find one, yadayada... Fact is, there is NO EDGE on the markets that is legal. Only ones I know of are illegal.... front-running and trading on insider info.

    Anything else traders think of as "edge" is delusion.

    (Even if you are a disciplined, savvy technical trader and believe "that's my edge", it isn't. You may have a comparative edge vs. other traders, but that's not the same as having an edge on the markets and in your trades. Trading the markets is plenty difficult enough without deluding yourself with the false notion of "edge".)
     
    Last edited: Apr 26, 2018
    #22     Apr 26, 2018
  3. Poindexter

    Poindexter

    Ditto. Interesting excerpt from one of Buffett's letters to shareholders on where to put it and why:

    Buffett - Copy.png
     
    Last edited: Apr 26, 2018
    #23     Apr 26, 2018
  4. trader99

    trader99

    If you're a "half-decent" trader, you can STOMP Buffett's "buy and hold".

    Actually, that's NOT a true statement. Buffett had a bet with a hedge fund 10 years ago that buying and holding the index will beat an index of hedge fund managers(supposedly "half-decent" traders or active managers). And the hf manager lost the bet.

    It's kind of difficult to beat buy and hold a broad index..
     
    #24     Apr 26, 2018
  5. pipeguy

    pipeguy

    US stocks are doomed for bull run, simple because aside of systemic flows their expected dividends are positive
     
    #25     Apr 26, 2018
  6. Perhaps Buffett made the bet with a "half-ass" trader instead of a "half-decent" one.
     
    #26     Apr 26, 2018
  7. speedo

    speedo

    Someone with an investor mindset trying to communicate with a trader (speculator) is like a Navajo trying to communicate with a Hindu.
     
    #27     Apr 26, 2018
    Sprout and trader99 like this.
  8. trader99

    trader99

    I have both mindsets. I have both a long term account for investing and a short-term account for trading. But I lean toward more trading but I appreciate long term investing via 401K etc.
     
    #28     Apr 26, 2018
    Arnie likes this.
  9. speedo

    speedo

    :thumbsup:
     
    #29     Apr 26, 2018
  10. 312

    312

    Why would one trade in a taxable account (presumably generating taxable short-term capital gains) while keeping buy-and-hold investments (which don't realize capital gains until sold) within a tax-sheltered account?
     
    #30     Apr 26, 2018