As I commented on David Gordon's Blog earlier today,
Great long term strategy, for a bull market. Neither Buffett nor any one of us alive today has lived through a Grand Supercycle Bear Market, the likes of which we are encountering today. By his own measurement of success, stocks will be higher in 10 years, something that even I do not discount. But I would rather enter my positions closer to the lows, which are likely to be significantly lower and months, if not years from now. What will change my mind? Prices. Just as they took me out, they will get me back in. Whether lower or higher from current levels, I don't care. As long as I stick to what got me this far, it will be the right thing to do.
Buffett's Berkshire Hathaway is down about 25% year-to date. This puts Buffett in the ranks of market performers. Yet the world swoons when he talks about stocks. I guess that is better then Cramer, but still, a guy who does no better then the average index fund isn't exactly the kind of market guru that appeals to me.
A few months ago I introduced Market Club's Trade Triangles as a purely objective, mechanical and profitable way to move in and out the markets. Here is an update on how well the Triangles are trading the Q's:
Note that for the past twelve months, without leverage, the Triangles are +76.21%. During the same time frame, Buffett's Berkshire Hathaway has dropped from approximately $120,000 to it's current $113,150, a decline of approximately 6%.
Triangles = +76%
Buffett = -6%
Buffett = -6%
Doth the Emperor be in need of some clothing?
[photo of naked elderly man omitted]