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Sunday, 12/11/2016 10:04:05 AM

Sunday, December 11, 2016 10:04:05 AM

Post# of 1149
BRK in a nutshell:

"Buffett's method is simple; anyone can copy it. Mostly it amounts to buying blue chips with hard to copy business models (like Gillette) and holding them in good times and bad.

He doesn't "trade" because he knows that traders usually buy and sell at the worst times. Buffett's average holding period is several years. He doesn't use charts. He makes little effort to pick tops or bottoms. He's often said that market timing doesn't work.

He does own many private firms such as Nebraska Furniture Mart and Sees Candies, but his public firms like Goldman Saks, American Express and Wells Fargo have probably outperformed the private ones. He likes insurance investments and he shuns cutting edge tech.

Buffett's Secret Sauce is that he uses extremely low cost leverage to amplify his performance. An individual holding a leveraged S&P 500 Index Fund for many decades could become a billionaire... like Buffett.

There you have it. And for free! The secret of the greatest investor who ever lived."

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