Warren Buffett, who built Berkshire Hathaway Inc. into a business valued at more than $1.16 trillion and himself into a celebrity billionaire renowned for his investing acumen and witticisms, will step down at year-end after six decades atop the conglomerate.
You might be correct, and you might be mistaken.
However according to the efficient market hypothesis, the news have already been priced in. It is in other words too late.
An average professional stock market trader with excellent tools and information at his/her disposal is correct 50% of the time.
If you are correct 51% of the time you are really good. 52% excellent, 53% maybe close to world class.
The best us normies can do is trust the efficient market hypothesis, and buy low cost global index funds and hold for decades.
Disclaimer: I am not a professional, so this is not financial advice. So you should probably speak with a professional financial advisor before making any decisions
yeah, I personally ascribe to this view, and prefer index funds to alternatives like stock trading. My comment was meant more as a joke, implying the news is a reason to panic sell off Berkshire stock, lol - I don’t actually have any idea whether that’s a good idea, it’s probably not.
(I would have jokingly said the same after Steve Jobs died about selling Apple stock, and indeed there was a dip in stock price after his death, but Apple’s market cap was $300 billion before his death and after he died it more than doubled to $900 billion by 2017.)
Thats good. I try to use the opportunities like this to inform people a bit, because it is hard to know.
The efficient market hypothesis is so incredibly useful, and saves people from hubris and bad investment decisions. It always grounds me when I think about other investments and financial decisions as well.
sell now?
You might be correct, and you might be mistaken. However according to the efficient market hypothesis, the news have already been priced in. It is in other words too late.
An average professional stock market trader with excellent tools and information at his/her disposal is correct 50% of the time.
If you are correct 51% of the time you are really good. 52% excellent, 53% maybe close to world class.
The best us normies can do is trust the efficient market hypothesis, and buy low cost global index funds and hold for decades.
Disclaimer: I am not a professional, so this is not financial advice. So you should probably speak with a professional financial advisor before making any decisions
yeah, I personally ascribe to this view, and prefer index funds to alternatives like stock trading. My comment was meant more as a joke, implying the news is a reason to panic sell off Berkshire stock, lol - I don’t actually have any idea whether that’s a good idea, it’s probably not.
(I would have jokingly said the same after Steve Jobs died about selling Apple stock, and indeed there was a dip in stock price after his death, but Apple’s market cap was $300 billion before his death and after he died it more than doubled to $900 billion by 2017.)
Thats good. I try to use the opportunities like this to inform people a bit, because it is hard to know.
The efficient market hypothesis is so incredibly useful, and saves people from hubris and bad investment decisions. It always grounds me when I think about other investments and financial decisions as well.