Stock picking is hard! Just ask Warren Buffet. The Oracle of Omaha started buying IBM 6 years ago and it became one of his biggest positions. The problem is, it didn't do so well. IBM is down about 9% from 6 years ago while an unmanaged S&P 500 index fund is up about 75% in the same time. And now he announced on CNBC he's cutting bait and has recently sold 1/3 of his position (possibly at an average price that's a little better than today's quote). That hurts! It should be noted that Buffet's overall performance which includes all his holdings has held in better. But it's no wonder that he doesn't want anyone picking stocks for his wife's portfolio after he's gone; he announced he wants her stock money in low-cost, unmanaged index funds.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com
Impressive! I really like your blog.
ReplyDeleteThanks for the post.
Financial Advisors