Saturday, January 17, 2009

It is possible to outperform Buffett.

The table on the right is the performance of buffet’s Berkshire Hathaway. At the annual return of at least 25% (I don’t have the exact number) he has become the richest man in world. Yes we all want to be rich like him by investing, but how? We aren’t as smart as him. Don’t get discouraged, you don’t have to be smarter than him to get richer than him.

You can do just as well as him by simply invest in his company Berkshire Hathaway. It is good, but as an engineer, my mind was trained to improve anything that can be improved, even improving our portfolio to outperform buffet! Now that’s worth a read:

According to my observation, all of buffett’s new investment in year 2008 has been losers for buffett. But don’t worry, buffett did his due diligence. And you can bet your life saving that his biggest new investment such as: Wells fargo, ConocoPhilips, US Bank corp, Burlington North Santa, Kraft will do extremely well in the coming years. If you buy the stock at 30% lower than what buffett paid, you bet you will beat his records. Here is what he bought this year:

Let us all come back in 1, 2 5 years and check out how these stocks are doing.

Read more!