Author Topic: Warren Buffett is wrong on passive investing....  (Read 12900 times)

barbaz

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Re: Warren Buffett is wrong on passive investing....
« Reply #50 on: March 06, 2017, 07:35:20 AM »
I understand that earnings in the present and earnings in the future might have different weightings.
How do you know the earnings in the future? It's a guess, based on some data about the company and some hope about how the market will behave.

Value investing, which is the investment style of Buffett (and many others), looks at the intrinsic value of a company. This includes cash reserves, production assets, patents, debts to be collected, and a lot of other things. To simplify, if the company stopped selling products tomorrow, for how much could you sell it?

The advantage of this approach is that it is much more resistant to bubbles. The disadvantage is that it is much harder to find good opportunities.

4n6

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Re: Warren Buffett is wrong on passive investing....
« Reply #51 on: March 07, 2017, 06:21:01 AM »
Here's Betterment CEO that he thinks Buffett is wrong as well. Just to be clear I am a fan of Warren Buffett and index investing. You all have convinced me of that. I just thought these would make interesting conversations.

http://finance.yahoo.com/news/warren-buffetts-advice-doesnt-anymore-160000315.html

barbaz

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Re: Warren Buffett is wrong on passive investing....
« Reply #52 on: March 07, 2017, 12:45:36 PM »
Here's Betterment CEO that he thinks Buffett is wrong as well. Just to be clear I am a fan of Warren Buffett and index investing. You all have convinced me of that. I just thought these would make interesting conversations.

http://finance.yahoo.com/news/warren-buffetts-advice-doesnt-anymore-160000315.html
That's click bait. Betterment does tax optimization. This works independently from your investment strategy.

 

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