Ed Butowsky on Warren Buffett’s Investment Record

Hi, my name is Ed Butowsky and I’m an investment advisor in Dallas, TX.

I know that many will disagree with me on this one, but I do not believe Warren Buffett is the investment guru that we all make him out to be.

Not only has a lot of Warren’s success come directly from his age and time staying invested, but also from taking significant risks, as you will see.

Many people do themselves a disservice by getting on Google, seeing Warren’s strategy, and then following it blindly. That is like following the workout plan of someone 30 years your elder or younger than you.

Warren’s goal as a lifetime professional investor has been to grow Berkshire Hathaway, his fund. Because of this, he and the fund can handle the massive swings in the market and the corrections throughout the years, but can you?

Most people invest with a purpose: whether that be funding lifestyle in retirement, buying their next house, or simply leaving a legacy, but few people invest without the limitations that Warren has in his fund.

Similar to certain institutional funds like college endowments, if the goal is to let the money sit in the account for decades on top of decades, it’s quite easy to formulate a strategy…set it and forget it!

But as I said, that’s not realistic.

This is not even mentioning how Warren made a lot of his money early on by investing in companies that happened to do well as well as he has quietly switched from his well-known strategy of being a value investor to investing in several growth companies such as Apple.

In conclusion, while Warren Buffett’s strategies have undeniably brought him success, they may not be directly applicable or suitable for every investor. It’s crucial to recognize the context and limitations under which his investment decisions are made and tailor one’s approach accordingly to achieve their own financial goals.

You want your volatility to be 80% of your historical rate of return. If you are unsure about what this means, feel free to reach out to me or visit my site where you can calculate if you are on track with this.

Thanks for reading,

Ed Butowsky

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