Investing Like Buffett…A Follow-up

It looks like a lot of people got the wrong impression from my post about how to invest like Warren Buffett.  So here are a few clarifications:

  • The post was written with a pretty heavy dose of sarcasm.  I know I’m not very funny and you’re probably used to the boring and serious version of me so maybe I should have made that clear up front.  Sorry about that.  
  • I have a huge amount of respect for what Warren Buffett has accomplished.  I did not mean to imply that I do not respect his strategy or accomplishments.
  • The main message from the post was to illustrate the complexity of the operation Warren Buffett has created and why anyone who says you can “invest like Buffett” is vastly exaggerating how easy it is to replicate his approach.

Sorry for the confusion.

Cullen Roche

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services. He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance and Understanding the Modern Monetary System.

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Comments

  1. Yep, that’s immediately how i read the original piece.

    There’s so many bull**** articles vaunting ’10 steps to invest like buffet’ that are a list of commonly known trading aphorisms [never lose money, buy cheap, holding period is forever, and so on].

    This type of list not only have no practical value whatsoever, but furthermore considerably underestimate the difficulty of achieving what WB has done [if it was that simple

    Sarcasm is not easy to pull off on this side of the atlantic ;-)

  2. Most people are too blinded by Warren Buffett’s wealth to actually understand how he amassed it. They’ve bought into the value investing BS hook, line and sinker.

  3. Cullen,

    What you wrote was true, sarcasm or not. However, you missed the one key element of his recent strategy which is to get in bed with government and take advantage of those connections to get access to deals and information that no one else gets.

    For example, blocking the Keystone pipeline for as long as possible would be good strategy if you owned a railroad.

    Remember that Goldman Sach’s private placement? How could that possibly have happened without the cooperation of government?

    Investing is much more than financial analysis. Like politics it can be war by other means.

    Cui bono?

  4. For the record, I understood exactly what you were trying to say. So you’re not completely missing the mark.

    The only way I can think of to possibly make it clearer would be to include a little smiley emoticon at the end…..

  5. Don’t worry, some people just don’t have any sense of humor. Anyone who claims everyone can invest like a multibillionaire is talking out of his arse.

  6. Seemed clear to me. But then given the length of time Warren Buffett has been investing, given how the wold has changed…. and changed back again, or not, why would anybody think that there would be a unifying total non varient modus operandi in place from start to now.

    Ya gotta figure out WHICH Warren….

    If ya don’t just write a series of articles to do the Warren for all seasons riff and to maximize your return as author, at least….

  7. I also thought you were clear enough the first time, so now I expect you to apologize for the apology. ;-)

    Maybe that was your original problem … no telltale emoticon.

  8. regular readers understands both the sarcasm and the point you were making because you made clear before the respect you have for value investing principles and the fact that there is a mith surrounding his image.