if you invest like warren buffett can you become rich?
If we know what stocks warren buffett invests in, and we invest in the same stocks, can we make decent money?
- radio309Lv 51 decade agoFavorite Answer
He is the greatest investor of all time. You are not. Please keep in mind this money was made in over forty year time span.This was age of buy and hold. Many feel buy and hold is dead. Now you buy and watch your stocks like a hawk.every day.Also 30 years ago the hot stocks were Xerox and Polaroid. If you buy, hold you can get killed.Buffett has failed in buying stocks at high prices.Many of the big boys pay too much for stocks.Things also change too fast for the buy and hold boys.Buffett comes from a time that has passed.
- 4 years ago
Warren Buffet became rich by investing in stocks, primarily in companies under 'value', known as value investing. lets say Apple drops to $300 from its $400 highs, Warren would buy at $300 and Hold until it hit $400 again. In contrast, growth investing is buying apple at $400 thinking it is worth $500 because of its historical growth as a company.
- 1 decade ago
Usually yes. Warren was in trouble in the 90's because he was wrong during that time. Never invest more than you can lose. However if you can lose some money, Mr. Buffett would be a good lead to follow.
- ALLLv 51 decade ago
No, Buffett is often misunderstood. In his earlier days he did a lot of trading and with a lot of smaller stocks. He can't do that now because he has too much money for small stocks.
He made his first millions, not so much by investing his money, but by investing for others through small partnerships, where he got a percentage of profits on other peoples money.
You cannot achieve his success with his investments because you can't buy much of what he buys. In addition to stocks, he buys whole companies, hard to get foreign companies, undisclosed bonds, commodities, and he gets special deals (Goldman Sachs, GE, etc).
Also, he leverages his investments by using interest free float, provided from his insurance companies.
To understand more, read his letters to shareholders in Berkshire Hathaway's annual reports.
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- Anonymous1 decade ago
Warren buffet also LOSES a substantial amount of money. Like all investments, risk is involved. Sure Warren buffet is rich.. but he made all that on high risk high profit investments, now to keep his money stable he invests in low risk low profit shares. He also spent around 20billion dollars investing in a bankrupt company in which he lost of a lot of money.
So i would say, No.
Try 'solid' investments, such as government bonds or housing (only if you live in a country thats not in a recession)
- paducahbillLv 61 decade ago
Yes, since he made his money investing, if you do it like him, then you will be come rich. But doing it like him, that is the hard part. Good luck. They always said that to me in Las Vegas when I was there.
- donfletcheryhLv 71 decade ago
If you know what Mr Buffet has recently bought, and you do likewise, and you know what he has recently sold, and do likewise, he will make more money than you. His fortune will be bolstered by having people buy what he owns and hold them until he has sold out.
This will be true whether his purchase and sale decisions are sound or not. Just because others know that he has bought is reason enough for many buyers
- 1 decade ago
warren buffet is investment (success and proven) guru. he invest right time.so we can earn as we know the investment of WBSource(s): Interview of WB in commercial channels