Don't get me wrong, I closely follow whatsays and does with his .
And yes, he's one of the most successful investors in history -- his returns over more than 60 years have made him the fourth-wealthiest person on the planet.
Let me explain...
The investments he made at the height of the financial crisis. With characteristic humility, Buffett said, "In of simple profitability, an average investor could have done just as well in the if they bought during the panic period."found that Buffett made $10 billion on the
Actually, an individual investor could have done significantly better than Buffett.
To earn $10 billion, Buffett invested $26 billion. His return on Journal article says Buffett made his first crisis investment in April 2008 and added to his investments throughout the crisis. He made a number of deals late in 2008 and one as late as April 2009, after the had bottomed.was about 38%, or 6.7% a over the past five years. The
Assuming an individual investor had $10,000 and invested one-third in the S&P 500 at the close in April 2008, one-third in November 2008 and the remaining third in April 2009, an individual would have beaten Buffett. That simple strategy would have gained 74%, or 11.7% per year.
Simply, because those three months were the months when Buffett was most active during the financial crisis, all it took to beat Buffett required investors to buy when he bought.
Buffett's timing was, as usual, nearly perfect on his investments. But Buffett has a disadvantage compared with individual investors. He can only invest in the largest companies because he has to make large investments to have an impact on his returns. A largeon a small investment not increase Buffett's much in dollar , but that same could have a significant impact on the of an individual who is not a billionaire.
Individual investors would have easily been able to beat Buffett's returns over the past five years, and they should be able to beat hisover the next five years.
In fact, following my Maximum Profit trading strategy during the financial crisis would have provided a total return of 157%, more than four times as large as Buffett's gain. And in the past decade, the Maximum Profit system would have outperformed Buffett's Berkshire Hathaway by 357%.
If you're not familiar with my Maximum Profit system , it's pretty simple.
My system combines the two most powerful indicators from the worlds of technical and fundamental analysis to find winning trades -- relative strength and growth. I use relative strength to pinpoint ready to move higher and growth to identify great companies.
Using these two proven indicators, I rank every stock currently held within StreetAuthority's various portfolios. By focusing only on StreetAuthority holdings, I'm able to reduce the universe of investments to less than 150. Each investment has already been researched and approved by an expert in their field.
Buffett might very well be the greatest investor in history, but I expect my Maximum Profit system to continue to beat Buffett.
And there's no reason why individual investors can't do the same.