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Thread: Who should thoese investors believe, Rogers or Buffet?

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[quote=APAULT,247847]I think perhaps you misundrstand the investment strategy of Buffet.  Firstly he dos not claim to predict the market except that over a long enough period prices will rise.  He seeks solid companies that are undervalued on the stock markt and considers if he went to sleep for 20 years they would still be valauble at the end of that time.  That is real investmnt not speculation.

He has reduced his holdings in PetroChina by abot 10%, that certainly does not say he lacks faith in the chinese economy.  maybe he needed some funds to make an alternative investment, that is a wise spread of his funds which reduces risk.  This is essentially the same as the investment technique that seeks to balance the portfolio by selling off some shares of those that have made gains.  You might also call this taking part profits. (A good but extreme example of this is if u buy a share at $1 and it rises to $2.  If you then sell half, that half is your original investment and if the share price drops down you still have the original investment).

I am not sure I would want to predict a bull market lasting 15 years, too much can happen in that time.  International politics could cause a world slump.  At th very least we are likely to see cycles within the 15 year period as some speculators panic and sell on the slightest bad news - you won't find Buffet in tht group.[/quote]

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