Learning from the Experience of a Master

Recently, some people have been praising Buffett's investment logic and want to follow in his footsteps. I can only say: you are dreaming, and you cannot replicate his investment logic.

As a stock god and a top figure in the investment world, he not only does not buy Bitcoin, but he is also critical of gold, refusing to invest in it. He likewise does not buy any new high-tech gadgets, such as AI; he is only interested in energy, agricultural land cultivation, and companies that generate productive value. He does not invest in high-tech companies like Tesla.

You cannot replicate his investment logic because he has plenty of money and only pursues an annualized return of 15%, while seeking low-risk investments with a loss rate of less than 10%. He prefers stability. Ordinary people think about making 100 times or even 10,000 times their investment. Do you really think you can achieve a 10,000-fold return using his investment logic? Can you turn $10,000 into $1,000,000? Is your ability greater than Buffett's?

Just because others make money does not mean you will make money; their logic for making money does not mean it will work for you. Everyone must establish their own investment logic. Investment should not only focus on returns but should pay more attention to the loss rate.

Avoid greed, and do not resist losses; this is the first investment logic you must learn. Buffett is great, but that doesn't mean that doing as he says will work for you. What these people say is what you want to hear, while in reality, it is often the opposite of his actions. For example, can you determine when to buy by looking at his capital holdings? He had already liquidated his positions and held cash before Bitcoin, gold, and the S&P 500 began to rise in March 2024. Can you operate according to what he says? Therefore, blindly following his advice may increase your chances of getting cut, as you do not have his wealth, his influence, and you do not know his true intentions. He follows a super long-term investment logic, while you desire a market that: buys and it rises, sells and it falls.

Investment should go against human nature; the probability of success will be greater. This means: first check if you have money in your pocket. If you don't have money, then your current trading logic is most likely completely wrong, and you need to break away from your current investment logic.