Has Warren Buffett became a WORSE investor as he got older?

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Good day subscribers thank you so much for joining me today i am jeremy this is a financial education channel and today we’re talking about warren buffett warren buffett the oracle of omaha the most famous the most successful investor ever probably in the history of the world this guy is amazing and he’s one that a lot of long-term investors or investment community

In general looks up to as like a legend like a god of investing right but as he’s gotten older it seemed like he’s gotten much worse as an investor those incredible returns he got for two decades straight it was started to erode in and nowadays he’s just not nearly as respected of an investor as far as what he’s doing nowadays versus what he was doing in the 80s

What he was doing in the 90s what he was doing in the 70s was absolutely amazing the returns he was getting so i wanted to run through with you guys five reasons why this seems that way in five reasons why basically it’s a lot harder for him nowadays then it was in the past even though he’s probably much more intelligent he’s probably much more well-connected he

Could get anybody to talk to him whenever he wants any ceo in the country basically he’s got one phone call away so you say you know he’s a lot smarter he’s more well-connected he has so much more information available to him how did he get worse well let’s start off guys so number one nowadays he can only invest generally in huge corporations we’re talking about

You know companies that have market caps of fifty billion dollars plus reason being is because berkshire has so much money coming in to invest that in order to get any type of substantial return on that money he really needs to you know make billion-dollar stakes in a company in order to make billion-dollar stakes in a company it’s got to be a company that’s worth

Tens of billions of dollars if not hundreds of billions of dollars now the amount of companies out there that are ten billion dollar plus market cap or really 50 billion dollar plus market cap which is what he’s mainly looking for the amount of companies that fit that category are very very small guys there are nassif amount of companies so he went from when he was

Starting out investing in those first you know 20 30 years that he could invest in olmos any company he wanted almost any company he wanted he had thousands of companies he could search through and didn’t pick them very best ones to put his money toward right nowadays he’s got 100 companies maybe 50 companies maybe that he can actually legitimately invest in and

Make a big stake in and then that number goes down even more because some of those companies don’t fit the criterias he’s looking for so the companies he has to pick from to actually invest in it’s very small guys it’s very very small so that’s hurt him substantially and that would hurt any investors substantially when you limit the amount of companies that you

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Have availability of investing in that limits the amount of money you can make in the long run by a lot a lot guys number two he doesn’t understand technology he’s admit this on a million interviews you could watch out there on youtube or anywhere he’s admit this time and time again he doesn’t understand tech which is why he pretty much never invests in tech he

Started to a little bit more recently and he’s done really bad a lot most of his tech investments you know like ibm and whatnot so but he does not understand tech and this hurts him greatly over the last 20-30 years because guess what guys in last 20 30 years the tech company and most of those are been what has carried the market to huge gains the tech companies are

The ones that have been blowing up that has been the biggest industry by far to push america forward and by far to push the stock market forward you look at you know 20 30 years ago you look at the biggest companies in america 100 biggest companies there was almost no tech companies in there almost no technology companies were in there nowadays look at it in the

List of the big 100 biggest you know market caps out there that are tech related it’s like half the list is tech related companies guys you know you think about some of the biggest companies in the world as far as market cap goes you know facebook 300 billion plus google 500 billion plus apple 500 billion plus microsoft a 400 500 billion plus some of the biggest

Companies in the world are all tech related and this is us this is a sector he’s completely missed out on because he does not understand it and that’s fine you know sometimes you don’t understand sectors or certain sectors i don’t underst well that i don’t get involved with a lot of the banking sector a lot of lilly gas stocks you know because i don’t know where

Commodities are going coal all those kind of type of companies i don’t really mess with because it’s not it’s not my realm of you know understanding and for him that’s tech but by a being tech sector that just hurts substantially guys because if so many great tech companies that are on the up and coming and had been on the up and coming for ten twenty years that

He just missed out on huge huge gains he could have had guys number three thing he has working against them is amazon has hurt a lot of his big retail names you know walmart is one of his biggest reit investments it has been for a long time and there’s tons of other retailers he’s been invested in sold stakes in or bought stake said that have been hurt by amazon

He once again amazon’s more of a tech related company although their retail and he doesn’t understand man was on that wall it has a high p/e so either wouldn’t touch it but amazon has hurt substantially so many of his retail names including walmart so that’s held back a lot of his games he could have had if amazon never existed amazon never came along all of his

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Retail names would pretty much have a lot higher stock prices than they do now they would probably be a lot more profitable have a lot more revenue but since amazon came in the game and has just really come in and be dominant it hurts so many of his retail names which is another reason why his returns have suffered over the last ten years next up guys number four

Coca-cola is the second biggest investment well coca-cola has been hurt over the last decade by a lot of negativity as far as you know not being very healthy for you you know coca-cola whatnot we’ve known this for a long time but it really hasn’t begun to hurt coke until really the past decade and it’s just small little slices here and there a lot more innovation

Has come in the soft drink category or basically non-alcoholic drinks you know you had energy drinks come in which coke has now taken advantage of because they’ve become a big investor in monster but of course that was way late in the game they should have done you know ten years ago five years ago something like that but a lot of more drinks are out there nowadays

That people are drinking that they were not drinking ten twenty thirty years ago when he was starting to invest in the eighties you know you think about so many big brands out there that you go to your local convenience store and see on the shelves those all most of those did not exist when when coke was around in the 80s and whatnot coming up and when he was

Investing in that so coke has been hurt by all these new brands of different types of drinks out there that come in and just you know taking a little market share away from coke and says someone go and grab that coke they go to grab a naked juice or go out grab whatever other kind of product there is out there maybe a bottle of water instead maybe an energy drink a

Red bull something like that those those products weren’t around back then guys so coke has been hurt by that and that’s hurt warren buffett next up last up here guys i generally speaking as you get older you get more out of touch with what is going on in trends and things like that guys warren buffett’s 86 87 years old now guys it’s really hard to be in touch with

Things that are coming up versus when you’re younger and you’re in their 20s 30s and you’re more in touch with you know what’s the next trend coming out what’s the next style coming out all those kinds of things what’s the next company coming out it’s hard to know that when you’re in your 80s i’ll be completely honest you go to any retirement community pretty much

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In america go there go door to door and just ask them say hey do you know what snapchat is i can almost guarantee you every single household will have no clue what snapchat is and you know that’s what the company that’s pushing an ipo probably within the next year that’s probably gonna have a 30 40 50 billion dollar valuation guys and they’re gonna be clueless on

That you know you could have gone to a retirement community 10 years ago and asked some what facebook is facebook what was that well you know what i mean and same thing if you go to you know a classroom with fifth graders in and you say hey what’s a landline phone there i’ll look at you like you’re crazy a landline phone i don’t know is that some new smartphone

Company or something you know what i mean it’s just they’re you know it’s harder to be in touch with things as you get older i’m 27 and some of the things you know and musicians are watching on i’m not as in touch as i once was back in high school when i knew all the new hottest musicians coming up sometimes i don’t know who these people are until already big

Names same thing that happens in the investment community when you get older generally speaking sometimes you don’t even know these companies you know there’s companies like under armour that warren buffett probably totally missed out on lululemon some of these brands that he actually probably understood really well but he didn’t understand it from a standpoint

Of you know is this gonna be the next big company or what not because he’s probably just more how to touch guys it’s really hard to be in touch with things as you get older you know that’s why parents aren’t as cool as kids right so anyways i hope you guys enjoyed this today warren buffett he’s still a legend he’s he’ll you know even if he did horrible for the rest

Of his career you know and who knows how many more years he’s gonna even do it even if he did horrible he’s still an investing god you know if there’s a mountain rushmore of investors warren buffett’s on that pedestal but his returns i’ve suffered over the last couple decades and i wanted to share it with you guys why this is if you enjoyed this video today hit

That thumbs up button if you come across this video and you have not subscribed yet you may want to i talk about personal finance on the channel talk about entrepreneurship i’m an entrepreneur and we also talked the stock market the most i break down stocks every week thank you for watching guys and have a great day you

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Has Warren Buffett became a WORSE investor as he got older? By Financial Education

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