Hi Guys,
When Warren Buffett talks we should all listen.
Buffett has said: “ You don’t need to look at the prices of the stocks you own from week-to-week, or month-to-month, or even year-to-year. If you own a cross-section of American businesses, and you don’t get excited (and buy) just at the very top, and if you buy in over time, you are going to do well.”
Buffett talked to a USA Today reporter in late October. He outlined three costly investment mistakes that erode wealth and are in the control of individual investors. The title of the article is the “Top 3 investing mistakes to avoid”. It is classic John Bogle and is now becoming classic Warren Buffett. Here is the Link to the article:
http://www.usatoday.com/story/money/personalfinance/2013/10/26/warren-buffett-investment-advice/3188499/If I didn’t know better, in terms of investment advice for the typical investor (if one such person really exists), Warren Buffett has morphed into John Bogle. The conversion seems almost complete at this date.
Enjoy. I apologize if this reference was previously posted.
Best Regards.
Comments
Thank you for reading my post. I hope you visited the Buffett reference. Ad hominem remarks always command a reply.
I mostly agree with Buffett’s investment advice. Also, I mostly agree with BobC’s investment advice. I made that perfectly clear in my posting to BobC. His response was excellent. He most assuredly does not need you to defend him in this ad hoc manner.
Since you took no exceptions to the substance of my submittal, I presume you agree with it to a large extent.
I practice both men’s investment philosophy of long-term commitments, infrequent trading, abstaining from daily crowd misbehavior, and cost containment. Although I do subscribe to the WSJ, I do not watch any of the business-oriented TV shows regularly. It is a rare and exceptional news day when I do view them.
There are two primary differences between the way I interpret Buffett’s and BobC’s market wisdom. On the larger scale, Buffett is famous and has a published track record. It is marvelous. Without disrespecting BobC’s market wisdom, he has neither from my perspective. Buffett has earned his wizard status; BobC is presently earning his with his clients.
On a lesser scale, Buffett was offering his wisdom to a broad generic audience freely. In its original format, BobC was offering his advice to a limited client audience for a fee. Free and fee are the operative differences. I simply expect more definite guidance as the pay-scale increases. Often, active mutual fund managers do not deliver to those expectations. That’s sad, but true.
By way of analogy, imagine that you are ill and seek medical advice. Very likely your wife might suggest taking a couple of aspirins and some rest. That commonplace advice is free. If you visit a doctor and he offers the same advice, you would very likely be an unhappy camper. To properly earn his fees, you would expect a more refined prescription. That’s what I would expect from a financial advisor.
I harbor no issues with BobC’s investment philosophy or style. It is very similar to mine. Even if I did take exception to his investment policies, I respect his prerogative to do so. That’s what markets are all about as a price discovery mechanism.
I never consider giving grades. In the investment world, performance and forecasting are far too transient and unstable. Change happens too quickly and too often.
I hope this clarifies my position. I believe BobC fully understands my position. Given your overarching prejudice against my postings, I’m not sure you ever will. That too is sad, but true.
Best Wishes.