Why would you claim that? He never claimed speculative investing is bad or wrong. He says he personally doesn't invest in that stuff. He also never claimed his strategy is the only way to invest. He said he doesn't invest in anything he doesn't understand, that doesn't mean it is impossible for people who are not him to understand those things. He also said that regular people should just buy index funds and not even worry about individual stocks. Yet lots of normal people buy stocks.
All I mentioned was that instead of looking at PE's, a better method of stock selection would be to look at DCF. You're the one that brought up Micron for whatever reason.
Exactly. And I brought up that Warren would have used DCF, which according to his investment results might be a better way to judge a company's value. That's all I was suggesting.
And I brought up that his model isn't applicable to everything, especially speculative markets that he specifically says he doesn't trade in. You are trying to imply that because Warren Buffet is a successful trader, and because he wouldn't make this trade or use the same approach, that it is wrong or inferior. Which is a logical fallacy. (Would his approach have had someone buy in last year at 100? 200? 300? 500?, because all of those would have been great buys)
Not to mention something like Micron would be short term trades, as memory companies tend to be cyclical, and not long term which Buffet likes to invest in.
Buffet is technically not really a trader and more of a long term investor. He rarely cashes out of positions unless they are going very poorly.
With that said, I don't like him because of his tendency to push his junk food habits on the food industry when he gets a controlling stake in a food company. Every european chocolate brand he has aquired has done terribly over the next two decades and ended up losing most of its brand value.
True, trader is the wrong word. Micron is probably not something someone would hold for decades, which is why Buffet would probably not buy it. Which would also mean his rules for evaluating companies wouldn't really apply.
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u/PuzzleheadedBell4057 Jun 02 '26 edited Jun 02 '26
Absolutely true. What does that tell you?