Warren Buffett Loses Billions


QUESTION: It is no secret that you went head to head against Warren Buffett in his silver manipulation. He is having a very bad year with his buy and hold value strategy. It looks like without making billions on the side manipulation of commodities, he is no better a fund manager than anyone else. Care to comment on his strategy?

WD

ANSWER: The Warren Buffett strategy of value investing and buy & hold is entirely dependent upon the direction of the market. The Warren Buffett strategy is a long-term value investing approach passed down from Benjamin Graham’s school of value. “Buffett is considered to be one of the greatest investors of all time. His investing strategy, value, and principles can be used to help investors make good investment decisions.” This is all the propaganda. It applies to an economy that is in a long-term inflationary trend that is really left over from the Great Depression days.

 

I was blamed for the takeover boom because I was advising a lot of the takeover players around the world. I simply showed clients the chart on the Dow in terms of book value and that the historic low that took place in 1977. I merely illustrated that you could buy a company, sell its assets, and double or triple your money because the market was so underpriced going into the end of a Public Wave. This Private Wave began in 1985 and that was the breakout of the market.

Anyone who simply bought stocks in 1985 made a fortune. Warren Buffett famously avoided investing in technology stocks. Nevertheless, he had bought Big Blue, then sold Apple and Oracle. He was so old school brick & mortar that he really missed the technology shift.

His buy & hold strategy fails because it ignores cycles. Anyone who bought stocks in 1985 and just held as the Dow rose from 1,000 to 21,000 beat even Warren Buffett. He takes positions in companies and cannot flip when the business cycle turns. He lost $4.3 billion in a single day. That is not a fund manager in my book.

Buffett did not believe the rally as most others going into 2018. For years, Buffett was building up its cash rather than investing. He began to invest during the third quarter, actually buying the high since the NASDAQ peaked in August, the S&P 500 in September, and then the Dow on October 3. He bought some banks like JPMorgan Chase and Oracle for the first time.

Obviously, his timing was not very good and his strategy of buy and hold does not fare very well in a decline.

World Financial Outlook for 2019


The 2019 Outlook Report covers the world. The Report will be priced at $1200 and will address the major markets. We will let everyone know as soon as it is available.

Armstrong Economics, Three PRIVATE BLOGS Explained


We have created three separate membership options for the Socrates Platform(www.Ask-Socrates.com) which are intended for three separate audiences. First, we have the BASIC Membership service at $15 per month which is intended for the average person who is interested in the broader term with respect to trends and not interested in short-term trading back and forth. Then we have the Plus Membership which provides short-term forecasting for the investor. The third level is the Pro Membership where reversals and arrays are available to access on over 1,000 markets worldwide (requires Premium Market Subscription or Snapshot Report). This is intended for active traders rather than investors who tend to be more position oriented (see comparison).

 

Then on top of all of this, we have our Institutional Level of service which includes hedging models among other information. While we try to target a version for everyone, it is difficult. The main goal has been to bring the ONLY FULLY FUNCTIONING Artificial Intelligence computer in the world focused on financial markets and global economy, proven over time, to the general public. This is free of personal bias. All of the market analysis (with exception of private blog post commentary) is written by the computer – not analysts. This inspires confidence for everyone knows there is no hidden agenda and there is no conflict of interest. The computer does not own property, mines, manufacture, and beside the fact that it cannot be bribed, it has not national patronage either.

I personally apologize for doing just one blog on Friday for the Pro Version. It is just that there are specific Reversals given so it is not designed to a general investor – we will create a broader view version over the weekend after closings. This is the difference between the three versions of the Socrates Platform, and corresponding private blog posts that are tailored to the three different groups of people we are servicing.

WE HAVE NOT YET COMPLETED THE NEW RELEASE OF SOCRATES

We are still working to finalize various aspects, including adding some additional features and forecasting modules over time. When we are finished with this initial rollout, we will make the formal announcement. Thank you.

 

Why 50 Million Chinese Homes are Empty


Published on Dec 14, 2018

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