Do you think it possible to consistently beat the best stock investor’s of our times? Or should we assume that the yield’s made by the likes of say Warren Buffet are too great to be replicated? I ask this after running into this very interesting blog the other day (I really like the way the writer of it writes):
http://thebeststocktradingintheworld.blogspot.com/
2007-07-29 13:56:18 · 11 answers · asked by new_song20 1 in Business & Finance ➔ Investing
Not by being "average".
Can an investor do better than another investor? Yep. The economy is not such a finite box that once someone reaches the border that there is no further to go. Contrary to some liberal politicians, economics is not a 'zero sum game'--that one profits does not automatically mean that another loses.
Can someone beat Buffett? Sure, but they better hurry if they want to do it during his life time, the guy is getting kinda old. But they will never beat him by being average. Bogle described picking individual stocks to beat the market akin to a gambler trying to beat the casino--it can sometimes be done, but not in the long run, the probabilities are against him. The average investor does have something going for him that the average bettor does not--ownership. We bet a comparative edge of this company over that, this sector or that. Gambling is a zero sum game, and the casino has the edge on getting those sums. Buffett isn't gambling. He knows what he is doing. And that isn't average.
2007-07-29 14:51:19 · answer #1 · answered by Rabbit 7 · 1⤊ 0⤋
The real question is, what do you mena by "Beat"? If beating Warren Buffet means having more money than him, then sadly, not many of us can do that. In fact, there are only 2 other people on Earth richer than Warren Buffet.
If beating Warren Buffet means making a higher return then him over a 40 years time frame, then sadly, not many have done it yet because most fund managers who do well, don't stay in the trade that long before retiring and giving themselves a good time.
If beating Warrent Buffet means making a higher return then him on the annual basis, then most hedge fund managers like me would beat him hands down. My best annual return has been 1000% so far.
If beating Warren Buffet means realising more cash out of the stock markets, then about 95% of the profitable traders out there would have beaten him as Warren Buffet seldom, or ever, sell profitable stocks.
http://www.mastersoequity.com
http://www.optiontradingpedia.com
.
2007-07-29 15:25:04 · answer #2 · answered by Anonymous · 0⤊ 1⤋
In any short time, it's very possible for someone to (even accidentally) beat Warren Buffett. Remember that Berkshire Hathaway has huge amounts to invest - someone with a much smaller amount might just get lucky by having one stock that goes up a lot in the time they're looking at. A speculator can win big - can also lose big. The website talks about a record over 39 days - that's nowhere near long enough to draw any conclusions on how good they are.
2007-07-29 14:04:41 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
I believe that the hedge fund Renaissance Technologies has been beating Berkshire Hathaway by a wide margin for many years now; especially if the massive fees that RT charges are not included.
The lesson here? RT is a very unusual "black box" hedge fund compared to the shrewd but conventional BH fund.
Point #2: Warren Buffet himself self says that a good investor could beat him if he has less than $10M to invest. The problem is that size is a serious obstacle to great returns, and BH is very large.
2007-07-29 14:29:21 · answer #4 · answered by Tom H 4 · 0⤊ 0⤋
of course the adverage investor can find a way to beat warren buffets returns. i heard somewere that warren buffet makes 20% a year. and i have also heard of people who turned 10000 into 1000000 in 1 year. i just think he's a better saver than most people and has had like 50 years to grow his money
2007-07-29 17:36:35 · answer #5 · answered by Shaun R 4 · 0⤊ 0⤋
No, by definition and "average" investor can't beat Warren Buffet, who is certainly above average.
Can someone beat Warren? Certainly. But anyone who does so over a meaningful time frame will soon attract so much money that you'll soon hear about them.
2007-07-29 16:45:26 · answer #6 · answered by Oh Boy! 5 · 0⤊ 0⤋
In my opinion, it's not a good idea to buy a single stock as your only investment. With a single stock, you're not diversified and you could lose everything if that one stock tanks. Instead, I'd suggest you invest in a mutual fund. A mutual fund owns a diverse group of stocks, managed by a professional investor. Well-known companies like Fidelity, Vanguard, T. Rowe Price, and many others offer a variety of mutual funds to new investors.
2016-04-01 08:48:38 · answer #7 · answered by Anonymous · 0⤊ 0⤋
of course. warren buffet makes good money but has anyone noticed that it hasnt been growing rapidly. his wealth has been stagnant. he doesnt know where to put his money so his money is pretty much, chilling out. if warren buffets annual return is like 20%. he should have doubled his month already to about almost 100 billion dollars but somehow he has plataued so his strategy probably works to get you some millions. since many people are using the same strategy well theres more competition.
2007-07-29 14:12:17 · answer #8 · answered by Anonymous · 0⤊ 0⤋
If President Clinton can define the word "is," you can define "beat" in your question. Certainly, anyone can achieve returns better than Mr. Buffett. In fact, you can do better than Warren Buffet. Your percentage increase in value can easily eclipse his.
2007-07-29 14:02:16 · answer #9 · answered by poppidad 4 · 0⤊ 0⤋
No.
If the average investor could beat him then the average investor would be a millionaire.
2007-07-30 13:29:46 · answer #10 · answered by Anonymous · 0⤊ 1⤋