RE: Investing

From: gts (gts_2000@yahoo.com)
Date: Mon Jun 16 2003 - 11:00:05 MDT

  • Next message: Hal Finney: "Re: Off-Off-List Re: META: Dishonest debate (was "cluster bombs")"

    Robin Hanson wrote:

    > Maybe Buffet is in fact much more rational than the average
    > trader.

    Incidentally, it is really stretching the definition of "trader" to include
    Warren Buffet in that category. One reason for his success is that he makes
    very, very few transactions. His strategy is almost a pure buy and hold
    strategy.

    Buffet is famous for saying something to the effect that you should start
    life with a wallet sized card on which the numbers 1 through 20 are printed,
    and that each time you invest in a stock you should punch a hole through a
    number. After you've punched the 20th number, you're done. No more stocks
    for you.

    These ideas are not very popular with commissioned brokers, however. For
    obvious reasons they tend to encourage active portfolio management. Those
    who, like me, come to realize the wisdom of buy and hold eventually get out
    of the business to preserve their integrity, assuming they have any
    integrity left to preserve.

    -gts



    This archive was generated by hypermail 2.1.5 : Mon Jun 16 2003 - 11:09:04 MDT