Warren Buffet - An Average Investor?

January 8, 2014

Commentary - January 8, 2014

 

How good is Warren Buffet in the market? Actually, his performance is quite average.

 

Look at the chart above that compares Berkshire to the broad markets for 2013, and then tell me if I'm missing something: So yes, BRK.A (white line) did a little better last year than the DIA and the SPY, but what's that candle graph on the top? Oh, that's the DDM. Hmmmm

.

The DDM was up about twice as much as Berkshire Hathaway, and cost about $177,700 less per share. Not only that, did Warren's stocks miss the dips last year? Kinda looks like his stocks do what the market does, but at a very high price...and isn't his chart looking a little flat over the past three months?

 

I hope I'm pointing out something that should be very obvious, stocks you own will ultimately follow the markets - very closely...even if you are Warren Buffet.

 

Now, I'm not going to take this further and tackle the "you can't time the market" baloney this morning. But I did want to drill into everyones head, that the great stock masters out there are typically no better than the market.

 

And if you want to do better than the market, you'd better consider something like double beta ETF's that will KILL the markets. And if you want to do even better, don't ride the downside. And if you want to do even better than that, then play INVERSE ETF's when the downside is real.

 

But right now we are... (Read the rest of today's forecast with a trial membership)

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