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Forum » Buffett compares Wall Street to gamblers, would trust 'monkeys' over financial advise
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Thread: Buffett compares Wall Street to gamblers, would trust 'monkeys' over financial advise

post 1660504253 04-30-2022, 12:05 PM
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Buffett compares Wall Street to gamblers, would trust 'monkeys' over financial advise

"It’s amazing how hard people make what is a simple game, but of course if they told people what a simple game it is, 90% of the income of people speaking would disappear," he said, saying there was much that people could do themselves.

"I hate to use the example, but you can have monkeys throwing darts at the page, and, you know, take away the management fees and everything, I’ll bet on the monkeys," he added.
post 1660504383 04-30-2022, 12:08 PM
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Just think.

People actually pay for a Bloomberg subscription.
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post 1660504453 04-30-2022, 12:09 PM
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Misc single stockcels on suicide watch.
post 1660504613 04-30-2022, 12:13 PM
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I agree with him 100%


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post 1660504643 04-30-2022, 12:13 PM
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hes made his entire career for his stock advice. people literally give their money to him to reinvest and he hand picks stocks


still all the old boomer advice i read in stock books 20 years ago is out the window. P/E ratios all that chit. even profitability. tesla had like what 1 or 2 profitable years ever and it mooned anyways
post 1660505263 04-30-2022, 12:24 PM
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Originally Posted By elterrible987⏩
hes made his entire career for his stock advice. people literally give their money to him to reinvest and he hand picks stocks


still all the old boomer advice i read in stock books 20 years ago is out the window. P/E ratios all that chit. even profitability. tesla had like what 1 or 2 profitable years ever and it mooned anyways
You have no idea what Berkshire Hathaway does do you?
post 1660505773 04-30-2022, 12:37 PM
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Buffett admits he doesn't know everything and basically missed out on massive returns in the tech. industry because he doesn't understand it. He's 91 years old but he really hasn't educated himself much post 2000 on the modern world.



As far as his opinion on Crypto, Buffett has not bothered to learn about it and doesn't understand its potential. Other billionaires/ trillion dollar companies are getting involved in Crypto. When Crypto actual has use cases and turns into actual businesses with revenue Warren will realize he was wrong about it, just like he was wrong on a lot of big-tech companies. He may be dead before that happens though.



I don't have anything against Warren's value investing buy and hold for your life approach so you can be wealthy as fukk when you are 80 years old. But he openly admits his investing strategies are very much a 'get rich very slow' approach.
post 1660506703 04-30-2022, 01:02 PM
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Originally Posted By guest89⏩
Buffett admits he doesn't know everything and basically missed out on massive returns in the tech. industry because he doesn't understand it. He's 91 years old but he really hasn't educated himself much post 2000 on the modern world.

As far as his opinion on Crypto, Buffett has not bothered to learn about it and doesn't understand its potential. Other billionaires/ trillion dollar companies are getting involved in Crypto. When Crypto actual has use cases and turns into actual businesses with revenue Warren will realize he was wrong about it, just like he was wrong on a lot of big-tech companies. He may be dead before that happens though.

I don't have anything against Warren's value investing buy and hold for your life approach so you can be wealthy as fukk when you are 80 years old. But he openly admits his investing strategies are very much a 'get rich very slow' approach.
LOL

Buffett's philosophy is to define your area of competence and understanding and then invest around that. If you don't have specialized understanding in the technology space, why would you put your money into it? You shouldn't and nobody will know everything, our brains have finite capacity in terms of memory retention and the breadth of things you can truly understand.

Next cornerstone of the Buffett philosophy would be the absence of called strikes in securities. The stock market pitches you every publicly-traded company every day and at a price that changes daily, but you don't need to swing at any of them. They could be great pitches, but you don't need to swing if you don't understand them. So you can sit there and watch pitch after pitch zoom by until you get one right where you want it, something that you fully understand, and then you swing for the fences.


He and Munger are all about keeping it simple, having the correct temperament, and making fewer moves and easier moves that produce huge gains over time rather than difficult high-risk short-term moves because a short focus is not conducive to long profits.
post 1660507713 04-30-2022, 01:29 PM
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The Buffet / Benjamin Graham approach is fundamentally correct, but Wall Street has been playing the game better in the last 10 years where fundamentals don't matter.

The Fed says you can't lose. No one ever got punished for buying 80 P/E NVidia, 200 P/E Tsla, crypto, or NFTs... so risk tolerance went through the roof and more and more aggressive bets just kept paying off. There were just always trillions of new dollars being printed and they all needed to find a home.

Basically, the Fed took out a huge loan in you and your children's name, took that money to the casino, and used it to set every machine to free-win payout mode for the wealthy people gambling there. That's the story of the American economy for the past 12 years.

But now the Fed just turned hard mode on and quit borrowing. Everything will slump for as long as they keep the printer off, because everything is just so bloated. My gameplan is just to stay cash and buy more when the Fed turns the printer back on this winter.
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post 1660513663 04-30-2022, 03:43 PM
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Originally Posted By elterrible987⏩
hes made his entire career for his stock advice. people literally give their money to him to reinvest and he hand picks stocks


still all the old boomer advice i read in stock books 20 years ago is out the window. P/E ratios all that chit. even profitability. tesla had like what 1 or 2 profitable years ever and it mooned anyways
This Zoomer advice is getting crushed in the markets long term.
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post 1660513753 04-30-2022, 03:46 PM
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How big is his cawk though? Who cares how rich he is if he's not able to bang 8+ females srs
post 1660513873 04-30-2022, 03:48 PM
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Originally Posted By EasyPassive⏩
How big is his cawk though? Who cares how rich he is if he's not able to bang 8+ females srs
Lol @ homeowners.

Srs.
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post 1660514073 04-30-2022, 03:52 PM
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Originally Posted By OPGenesis⏩
Lol @ homeowners.

Srs.
Yeah he owns his home too. I mean how smart can he be?

He just bought at the right time and got lucky srs
post 1660514383 04-30-2022, 03:58 PM
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Low cost index funds are a better investment than stock picking for most people.
"A stupid man's report of what a clever man says can never be accurate, because he unconsciously translates what he hears into something he can understand."
post 1660514453 04-30-2022, 03:59 PM
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Every decision we make in life is a gamble. No one knows the outcome of anything.

Goes same with stocks. He is right.
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post 1660517013 04-30-2022, 04:45 PM
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Originally Posted By MyBaddBrah⏩
I agree with him 100%


not what he said

he said most/all crypto likely has no long term value

and he is right
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post 1660517153 04-30-2022, 04:48 PM
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It's an insider trading scam for a few privileged groups, everyone else gambles.
post 1660517753 04-30-2022, 05:04 PM
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Originally Posted By Mr
Low cost index funds are a better investment than stock picking for most people.
This right here. Out of all the hot shot stock bros in Wall Street almost all of them lose to index funds.

Another fun fact. House and senate members (and their families) routinely beat the markets by 6-10%. Lmao at us.
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post 1660518213 04-30-2022, 05:13 PM
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Originally Posted By Kawhilights⏩
This right here. Out of all the hot shot stock bros in Wall Street almost all of them lose to index funds.

Another fun fact. House and senate members (and their families) routinely beat the markets by 6-10%. Lmao at us.
Pelosi actually did it right during the Fed bull. She'd buy deep in the money call options that basically acted like shares with 2x leverage. Enough to jooce her gains in a market that was continually going up, but not enough to screw her if a pick missed.

Yeah, she definitely traded on insider info, but a lot of her plays were just calls on big FAANG chit.
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post 1660518353 04-30-2022, 05:16 PM
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I mean he's not wrong. No one beats the market without inside info. People who dedicate their entire career and lives studying this stuff can't reliably do better than the market outside standard deviations of variance and luck. It's all voodoo witchcraft to obfuscate corruption and explain dumb luck. The only ones who get rich off this stuff either happen win more gambles than they loose, or are acting with inside knowledge
post 1660519633 04-30-2022, 05:43 PM
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Originally Posted By hackerwacker⏩
I mean he's not wrong. No one beats the market without inside info. People who dedicate their entire career and lives studying this stuff can't reliably do better than the market outside standard deviations of variance and luck. It's all voodoo witchcraft to obfuscate corruption and explain dumb luck. The only ones who get rich off this stuff either happen win more gambles than they loose, or are acting with inside knowledge
That’s not really what he’s saying. OP’s quote specifically is talking about market makers, hedge funds, etc who scrape fees from transactions in the stock market and have incentive to push the gambling angle and options, heavy trading activity, and all that.

Buffett thinks you don’t need any of that. If you have specialized understanding in something, from working in that industry or whatever, then you should leverage it for investing. If you don’t have specialized understanding, you’re likely better off buying a low-cost index like the S&P 500 over the long term and at regular intervals, maybe throwing more at it when you have opportunities to average down.

But the core idea is that stocks are just pieces of real businesses and should be viewed as such rather than this line on a graph that is constantly fluctuating. If you’re really investing from a value standpoint, you won’t care if the stock market shuts down for five years — it’s just a place to trade pieces of businesses.

Most people in this don’t look at it correctly and crypto is the apex of it. Companies provide services and products that keep the world spinning, crypto produces nothing of value and is likely the worst in terms of promoting ridiculous levels of activity and scooping up transaction fees etc.
post 1660520583 04-30-2022, 06:06 PM
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Originally Posted By FA*******⏩
The Buffet / Benjamin Graham approach is fundamentally correct, but Wall Street has been playing the game better in the last 10 years where fundamentals don't matter.

The Fed says you can't lose. No one ever got punished for buying 80 P/E NVidia, 200 P/E Tsla, crypto, or NFTs... so risk tolerance went through the roof and more and more aggressive bets just kept paying off. There were just always trillions of new dollars being printed and they all needed to find a home.

Basically, the Fed took out a huge loan in you and your children's name, took that money to the casino, and used it to set every machine to free-win payout mode for the wealthy people gambling there. That's the story of the American economy for the past 12 years.

But now the Fed just turned hard mode on and quit borrowing. Everything will slump for as long as they keep the printer off, because everything is just so bloated. My gameplan is just to stay cash and buy more when the Fed turns the printer back on this winter.
Yeah. I think the question is will they turn it back on quickly enough.

Any thoughts on the theory that volatility will trigger a sell off which will increase volatility which will trigger more selling, etc.? That there are large pools of "dumb money" in funds with set VIX triggers which automatically sell stocks/buy bonds when a predetermined number is hit + if too many of them get set off we could see a cascade of selling even as prices fall?
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post 1660521493 04-30-2022, 06:28 PM
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Originally Posted By katya422⏩
Yeah. I think the question is will they turn it back on quickly enough.

Any thoughts on the theory that volatility will trigger a sell off which will increase volatility which will trigger more selling, etc.? That there are large pools of "dumb money" in funds with set VIX triggers which automatically sell stocks/buy bonds when a predetermined number is hit + if too many of them get set off we could see a cascade of selling even as prices fall?
There is also a mountain of margin in the stock market right now, tons of debt enabled by low interest rates and the pandemic money printing, that will unravel and likely cascade down
post 1660522413 04-30-2022, 06:59 PM
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Stock market is pretty much a casino for the rich. Anyone with a lot of money can make a lot of money. The Wall Street guys that I admire are the ones who came from nothing. Buffett himself isn’t much of a genius. His father was a congressman and a businessman who had his own brokerage office.
post 1660522533 04-30-2022, 07:01 PM
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Originally Posted By ChristmasFnatic⏩
"It’s amazing how hard people make what is a simple game, but of course if they told people what a simple game it is, 90% of the income of people speaking would disappear,"he said, saying there was much that people could do themselves.

"I hate to use the example, but you can have monkeys throwing darts at the page, and, you know, take away the management fees and everything, I’ll bet on the monkeys," he added.
You could say the same about bodybuilding and fitness influencers.
post 1660529953 04-30-2022, 10:07 PM
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Originally Posted By FA*******⏩
The Buffet / Benjamin Graham approach is fundamentally correct, but Wall Street has been playing the game better in the last 10 years where fundamentals don't matter.

The Fed says you can't lose. No one ever got punished for buying 80 P/E NVidia, 200 P/E Tsla, crypto, or NFTs... so risk tolerance went through the roof and more and more aggressive bets just kept paying off. There were just always trillions of new dollars being printed and they all needed to find a home.

Basically, the Fed took out a huge loan in you and your children's name, took that money to the casino, and used it to set every machine to free-win payout mode for the wealthy people gambling there. That's the story of the American economy for the past 12 years.

But now the Fed just turned hard mode on and quit borrowing. Everything will slump for as long as they keep the printer off, because everything is just so bloated. My gameplan is just to stay cash and buy more when the Fed turns the printer back on this winter.
Oops I accidentally negged you when I meant to rep you lmao. Great post.
post 1660546523 05-01-2022, 10:07 AM
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Originally Posted By ralphlaurenbrah⏩
Oops I accidentally negged you when I meant to rep you lmao. Great post.
Hehe ty men.
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