I read recently that Warren Buffett’s Berkshire Hathaway second quarter profit fell 40% as some bets he made on stock market futures didn’t pay off. He also sold shares in ConocoPhillips in the second quarter because he said he made a mistake in buying them in 2008 when oil shares peaked.
So if the “Wizard of Omaha”, the man whom the media (and many investors) fawn over, makes mistakes picking short-term market directions and individual stocks, what chance do you and I have to make the right guess with our investments? Seems to me the chances are really low. So why bother? You’ll have more investment success creating a well-diversified portfolio of stock and bond indexes and sticking with them rather than trying to be your own “Wizard of Anywhere”.