Bob O'Brien
Head Instructor
bobrien@mywealth.com
I wrote an article a couple of weeks ago, in which I laid out some reasons as to why I thought that Warren Buffett is very misinterpreted and misunderstood. Buffett is indeed one of the greatest investors to ever walk the face of the earth, and his strategies and ideas carry tremendous weight. He influences the influencers and very often his beliefs are taken out of context and therefore misunderstood and lead to stock bubbles.
We dedicate an entire chapter to Warren Buffett in our Investing 101 course so be certain to take the course!
*****Question of the Week! *****
(Take a shot!!….Chance to Win a FREE Stock Trading Course (VALUE: $150.00!!) by Emailing Us your answer no later than Friday 9AM EST and 3 Names will be randomly picked and named as Winners!! (Must be a blog subscriber) The stock market rallied approximately 50% since its March 9th lows, but has shown signs that the rally may be over. Do you believe that the Stock Market Rally is over? a) No, the Stock market will continue to rally b) the Stock market is just in a holding pattern for now c) the Stock market rally is over d) the Stock market is going to crash again
When you listen to Buffett and talk about bonds, you would think they are the worst investments ever, and that everyone should be investing in 100% stock all the time. The truth of that matter is that Buffett does not like bonds, but he is never 100% invested in stocks. Buffett prefers cash over bonds, and when you step back for a second there is not a huge difference between bonds and cash when you are stock investor. Both have an inverse correlation to stocks and are relatively safe, but cash is even safer.
When it comes to market timing if you listen to Buffett you would think that he is dead set against it. Nevertheless, his fortune has been built on being patient and waiting for the market to take a big drop, and then going in and buying everything cheap. Is this not market timing? You better believe it is!
Market timing is really one of those things where most people are either on one end or the other. They either feel that is impossible or that is the only way to invest. Nobody can predict what is going to happen in markets consistently time after time, but when you close your mind to market timing you lose the flexibility necessary to be a good investor.
Buffett is much more of a mystery than he would lead people to believe, and although he called derivatives weapons of mass destruction he himself has owned them. If you are looking for black and white investing tips, Buffett is not the place to start, like he has said “Investing is not complicated, but it is far from easy’.
Be certain to take our Investing 101 course, in order to take control of your investing!
