Warren Buffet's mantra - 'Buy when no one else is'. So, why aren't you?

Reaper

The big difference is that he can negotiate much better terms than I can as an individual investor. A quick Goodle search to see what he has done this month includes:
Harley Davidson which earns him 15% pa
Swiss Re which earns him 12%pa and the option to convert to 20% ownership
... and that's just the first two I looked at. There have been many more better deals in the past.

This seems to be the current trend. People with large stacks of money (him, Arab sovereign funds etc) are getting stunning investment deals which I would buy if I could. Since I can't the dross that's left looks largely unapealing.

Conrad

fatpig wrote: »

I think he was referring to stocks and shares and not houses. 2 quite different things.

No, he speaks of market principles that apply to items with asset characteristics.

There will be a market bottom. Buffett has argued the crowd always miss the bottom because theier brains overdo the downside, just as the crowd over does the up side on the accent.

stevetodd

Conrad wrote: »

No, he speaks of market principles that apply to items with asset characteristics.

There will be a market bottom. Buffett has argued the crowd always miss the bottom because theier brains overdo the downside, just as the crowd over does the up side on the accent.

Yep that's what sheeple usually do and this downturn will be no different

Conrad

Reaper wrote: »

The big difference is that he can negotiate much better terms than I can as an individual investor.

Regardless of your own situation, the principle still applies - there is a 'best' time frame in which to buy, but 99% will miss it because fear has zombiefied them.

Conrad

itsallagame wrote: »

He’s no more than a Ponzi builder

His Berkshire / Hathaway funds has had above average delivery for decades. I dont think you get to be the worlds richest man building ponzi's - well not for any period anyway

Really2

Conrad wrote: »

Regardless of your own situation, the principle still applies - there is a 'best' time frame in which to buy, but 99% will miss it because fear has zombiefied them.

I think I picked a good time to buy and a good discount (perhaps I could of got a bigger discount overall at the bottom but I doubt I would of got my house in the location it is).
I may undershoot a bit but the mortgage I have been able to get from buying earlier should be taken in to account (currently 1.49% and not likely to go up in the near future, captial repayment per month = £1000 + IO = £215)

penguine

Conrad wrote: »

Regardless of your own situation, the principle still applies - there is a 'best' time frame in which to buy, but 99% will miss it because fear has zombiefied them.

If 99% of those financially able to buy a property are paralysed by fear when the bottom is reached, the remaining 1% are not really going to be enough to get the market moving again.

stevetodd

fatpig wrote: »

It's obvious that we're nowhere near that bottom yet though. House Prices don't go up and down on an almost daily basis as shares do so it would be easy(ish) to identify the bottom when we're actually there

But if you get a low offer accpeted it could be at the same level as (or lower than) the bottom.

mewbie_2

Conrad wrote: »

His Berkshire / Hathaway funds has had above average delivery for decades.

So did Bernie Madoff, Stanford, etc. I am not suggesting anything of the kind for the sainted Warren Buffet but his basic strategy is / was to buy into names (Pepsi,etc.) and sit on it for a very long time. Pretty simple stuff.

A genius or just very old?

Conrad

purch wrote: »

I just heard a rumour that he said "Buy 64 Acacia Avenue cos no one else will"

touche

Implicit in many posts is the notion the time to buy will make itself known by way of evidence.
That time however will be well past the sell by date as everyone will know, so the sellers will no longer accept those ultra deep discounts

I think the bottom for the South East will shorty be upon us