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Why the father of indexing invests in stocks and funds (Globe)


EdWatchesBoxing
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http://www.theglobeandmail.com/globe-investor/funds-and-etfs/etfs/why-the-father-of-indexing-invests-in-stocks-and-funds/article1844201/page1/

 

Very interesting, I hope a lot of people take this article to heart  ;D

 

If markets are efficient, how do you account for the performance of star investors like Warren Buffett and Peter Lynch?

 

Peter Lynch had a very short outperformance and he quit while he was ahead. My sense of Warren Buffett is he is not someone who buys when it’s cheap and sells when it’s expensive. What he’s done is bought companies instead of individual stocks and he’s had an active role in making those companies click. One of the first great investments was the Washington Post. Well, he went on the board and he helped turn around the Washington Post. And similarly, with Geico and everything he’s done. Look, he’s a brilliant businessman, there’s no question about it. Having said that, though, I don’t think his record is so great simply because he read Graham and Dodd and bought value stocks when they were cheap.

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