Invest Like Warren Buffett? Not Me.
Warren Buffet gets a lot of credit for being a genius investor. That credit may be deserved but I have no desire to invest for my retirement in a manner similar to how Buffet invests to make billions.
< Buffet is one of the world’s wealthiest men. Because of that, he can take enormous risks – and he does. There is no way that a retirement investor of moderate means (like us) can or should take such risks. This is why I cringe when I hear or read someone claiming to adopt the investment strategies that Buffet does.
Also, Buffet makes mistakes – big ones. In 2008, his ownership stake in his company Berkshire Hathaway, Inc. took a beating, losing $9.6 billion in value. The Sage of Omaha’s loss exceeded that of any other large company executive. (Source: Here and Here) So much for being a rock-star investing genius. Luckily, Buffet had billions to play with. I don’t.
Another important factor to understand about Buffet is that he was and is a full participant in the corporate and government mistakes (and bailouts) that have damaged all of us. He is not an outsider or unwitting victim. For more on this point, read this: Hey, Warren Buffett, thanks for nothing.
We own a small position in Berkshire Hathaway so I want Buffet to do well. But I do not scour his annual reports or read every word that is written about his investing ideas. He operates in a financial realm that is entirely different from that of the average retirement investor. Our portfolios are chump change to Buffet and his corporate/government cronies.
I will stay on my course. Buffet can stay on his. May we both get what we want and need.
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