Buffett’s not a trader, he’s an investor. Big difference. (Actually, he does a little trading in currencies and commodities, but for the most part his positions are long-term in nature.) One thing to keep in mind: Most great long-term investors underperform a large percentage of the time. John Templeton underperformed the S&P in 40% of the years he managed money, but in the end came out WAY ahead. Bottom line: It’s hard to be a trader (focused on the short-term) and an investor (focused on the long-term) at the same time. Generally, you have to pick one or the other. And if you choose to be an investor you’re going to underperform in the short-term a certain percentage of the time no matter how well you do in the long-term.
