Replies to post #398 on Berkshire Hathaway Inc (BRK.A)

[fung_derf]

I don't think anyone is questioning Buffett's success. It was you who was saying that TA is useless. Perhaps you should be the one posting examples then.
I have my own personal account as proof of TA success.

Until this year, he has invoked book value: Page 2 of his letter would include the book value return, the S.&P. return and a third column, “relative results,” which showed how he was doing in comparison with the index. Now that comparison is gone. If that column existed in the current report, it would show that he trailed the S.&.P. again, using book value.

In fact, counting 2014, Mr. Buffett has underperformed the S.&P. 500, using book value, in five of the last six years. That hasn’t happened before. His 2010 letter to shareholders showed Berkshire’s returns over five-year rolling periods. In every single such period until then, he had outperformed the S.&.P., using book value.

“The new numbers don’t change my probability analysis,” Mr. Mehta said. “Warren Buffett has been an extraordinary investor. But he hasn’t been doing as well recently.”

Mr. Mehta’s calculations show that over his first 25 years at Berkshire, Mr. Buffett’s average annual return was 24 percent using book value and 30 percent using market value, compared with 10 percent for the S.&P. 500. Over his second 25 years, his performance was still outstanding: 15 percent for book value, 14 percent for market value and 10 percent for the index. The last six years reveal a different picture: 13 percent for book value, 15 percent for market value and 17 percent for the index. That’s no disaster, but Mr. Buffett didn’t meet his own standard: He frequently underperformed the market.

[fung_derf]

https://qz.com/1216260/warren-buffett-doesnt-beat-the-market-anymore/

[fung_derf]

https://www.moneycrashers.com/the-best-way-to-invest-fundamental-or-technical-analysis/

[fung_derf]

https://www.wallstreetmojo.com/fundamental-analysis-vs-technical-analysis/

Conclusion


Try to ask some Investor: “Fundamental Analysis vs Technical Analysis”? Most of them will probably tell you that combination of both analysis is the best way to go. While most analysts on Wall Street focus on the fundamental side, major brokerage firms now employ technical analysis as well.

Whether you opt for Fundamental or technical analysis, always remember these two quotes of Warren Buffet. I truly believe they have got a very strong meaning.


Be fearful when others are greedy and be greedy when others are fearful.

The market is there to serve you and not to instruct you.”

So ask yourself these questions,


Do I focus more on technicals or fundamentals?

Or


Should I try researching both of them?