Why Trying to Copy Warren Buffett's Latest Moves May Not Be a Great Strategy for Investors
When Warren Buffett's company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), reports its latest 13F filings, which show which stocks the company owns, some investors are often quick to buy the same stocks the billionaire's company did, hoping that it'll lead to a great return. After all, if the billionaire investor is bullish on a stock, why not jump on the bandwagon?While there's no shortage of investors who are eager and willing to copy Buffett's stock moves, you might be disappointed if you do so. Here are three reasons why you don't want to copy Buffett.Buffett is a billionaire who isn't going to have the same needs as you are when it comes to investing. His priority may be to preserve capital and steadily grow Berkshire's portfolio. For some growth investors, the goal may be to aim for big returns, particularly if they don't have many investing years left and are approaching retirement. Other investors, however, may want to generate significant dividend income. Assuming that Buffett's approach aligns with your own strategy can lead to your adding stocks to your portfolio which may not be optimal for your needs.Continue reading
When Warren Buffett's company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), reports its latest 13F filings, which show which stocks the company owns, some investors are often quick to buy the same stocks the billionaire's company did, hoping that it'll lead to a great return. After all, if the billionaire investor is bullish on a stock, why not jump on the bandwagon?
While there's no shortage of investors who are eager and willing to copy Buffett's stock moves, you might be disappointed if you do so. Here are three reasons why you don't want to copy Buffett.
Buffett is a billionaire who isn't going to have the same needs as you are when it comes to investing. His priority may be to preserve capital and steadily grow Berkshire's portfolio. For some growth investors, the goal may be to aim for big returns, particularly if they don't have many investing years left and are approaching retirement. Other investors, however, may want to generate significant dividend income. Assuming that Buffett's approach aligns with your own strategy can lead to your adding stocks to your portfolio which may not be optimal for your needs.
