STREET DOGS
MICHEL PIREU: The true measure of waves
Found in Daily Speculations, writes Michel Pireu
Found at Daily Speculations: From Jeff Watson: "After a certain point, waves are not measured in feet or inches, they are measured in increments of fear." — Buzzy Trent, surfer extraordinaire. How would this translate to the markets? From Russ Sears: Reading some headlines, I see Buffett has "dumped Walmart" and "bought airline stocks", both of which seem to violate his rules: 1. to keep a stock forever and 2. to never buy airlines. It would seem the maths of such a big fund has forced him to change. Buying a small market value stock and riding the exponential growth once it succeeds no longer adds much to his returns. Since he is so diversified with such big companies, hanging on forever gives market-like returns and one is much more efficient by buying an index. So it would seem he is left with trying to time the market, on big companies and/or sectors, to add value to his shareholders. My question is: has he been successful when he has violated his rules in the past? Or does he, ...
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