People who believe Warren Buffett to be a buy and hold investor are not very well informed.
First and foremost, Warren Buffett is a master deal-maker. And he's an expert at using derivatives to protect himself.
If he were only a buy and hold investor, he'd not be this rich.
First and foremost, Warren Buffett is a master deal-maker. And he's an expert at using derivatives to protect himself.
If he were only a buy and hold investor, he'd not be this rich.
More often than not, he's used a combination of derivatives, complex instruments in order to create a what's called "heads I win, tails I don't lose much" scenario, like the deal he did with Goldman Sachs during the housing crash.
This superb mastery of the use of right derivative instruments with the most opportune timing backed by his cash holdings has created wealth for him beyond what a simple buy and hold would have.
Don't be fooled by what you read on Social Media based on his quotes alone.
Go and read his annual reports, partnership letters, and books on him. You'll have a better picture of who he is and how he got wealthy.
Go and read his annual reports, partnership letters, and books on him. You'll have a better picture of who he is and how he got wealthy.
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