The Practical Way

Tuesday, 10th February 2009

Has Warren Buffett lost his touch?

Written by George Traganidas Topics: Articles, Personal Finance, Stock Investing

---

It is always useful to see both sides in an argument. This increases your understanding of the situation and hopefully will help you to make better decisions. I have been following Warren Buffett very closely in the last 3 years and I have been reading articles written about him and his investment and management style. Everyone is praising him for being a very good investor and being able to attract great companies.

There is one person though who is betting against him. Who tells that his time is over and he has lost his charm. This person is Doug Kass and the last few months he wrote articles on why Warren is wrong and why his style does not work any more. His articles and reasoning are very interesting. His main point is that his style is not applicable to this new age and following it will cause you to lose money.

Is he right? Has Warren lost his touch? I think that it is too early to make a judgment on this. Time will tell. I find it interesting though that someone has the courage to go against everyone and claim that Warren’s style does not work any more. Here are the links to his last two articles:

Buffett’s Strategy Is Stale
Is This the End of Warren Buffett?

I will keep my eyes and ears open to learn more about this prediction. For the people who are following the investments of Warren I do not think that these articles signal a stop. I still think that Warren investments are still good to copy and can make you money.

Follow the practical way,
George Traganidas