Warren Buffett buys stake in BAC | stockbee

8/25/2011

Warren Buffett buys stake in BAC


Not necessarily same thing will happen in BAC. But The market excitement on that news was overkill. And so the gap up in Index faded.

Trade your own setup. If you don't have expertise in buying falling knife, why try it. Setup selection is key to long term survival in trading game.

Buffett has his setup based on his valuation model. He can still hold a stock if it goes down 50% after he buys it. If you don't have that kind of patience why trade that kind of stock.

3 comments:

saf said...

Plus hes going to get 10% dividend per year for this investment. Its another way to get 10% return from a $5 Billion investment. Try buying $5 Billion dollars worth of stock to get guaranteed 10% per year.

His trades are totally different from day to day retail traders.

PakistaniTrader
http://twitter.com/#!/pakistanitrader

saf said...

I also wanted to thank you for your highly motivational posts.

I have learnt a lot about trading from you and guys like Mark Minervini, Joe Fahmy, Frank Zorilla etc.

I must say the information I got from you is thus by far the best and makes perfect sense to form my own opinions.

Pradeep Bonde said...

Thanks