Want To Trade Like Warren Buffett? Read This...
I get lots of questions from friends and colleagues about how Warren Buffett got so successful, and how they could do the same.
Unfortunately, most of us will never be in the same realm as Buffett, nor will we ever come close to his current wealth ($90 billion).
But that doesn't mean we can't try, nor does it mean we can't employ the same strategies that he uses.
Anyone can follow Buffett's simple investment rules - which are:
1: Never lose money
2: Never forget Rule #1
Ha! Easier said than done!
But, you can follow in his footsteps to a degree, and I'm updating a post I made about this topic from last year. Read on below.
No doubt Warren Buffett is one of the greatest investing legends of all time, and his net worth ($90 billion) proves it.
Here’s a fun site that lists in real-time the world’s richest people. It updates constantly. As of today, Buffett is #3.
I'm sure many of us who have spent years investing in the markets would like to emulate his success.
Unfortunately we don't know what he's invested in until after the fact.
Luckily enough though, we can get a glimpse of his current portfolio using this list. You won't be able to find the exact price of his buy-ins, as I’m sure he scales in at various times, but this site can give you a range.
You can certainly play the same stocks, possibly at even better prices.
But what if you had a way to make one investment that takes into account all of his holdings in one shot?
Well, one such investment exists (actually two), and it trades on the U.S. stock exchanges every day, and is open to any individual investor.
I've written up a report detailing an option strategy that you can use to follow Buffett's investments. It's a great way to piggyback this investing legend with less risk and better returns. Yes, you can quite possibly do even better than Buffett!
Take a peek at the Special Report.
Many of you also know that I love put-option selling (which is different than the Buffett report strategy). This is what I do for a living and it's what many of these blog posts are about.
But did you know that Warren Buffett also sells put options? Yep, that's right, and one classic trade netted him $7.5 million!
Back in 1993, Buffett wanted to buy shares of Coca-Cola (KO) for $35 per share.
But the stock was trading for $39 at the time.
Since Buffett didn't want to pay $39 for it, he decided to sell 50,000 put options at a $35 strike price and collected $7.5 million dollars in the process.
If KO fell to $35 by the option expiration date, Buffett would have to follow through on his agreement and buy the 5 million shares at $35 per (plus keep the $7.5 million).
Well, KO actually went higher, and unfortunately for Buffett, he didn't get to buy any shares. But you know what? He still walked away with $7.5 million dollars as a consolation prize. That's a sweet gig!
And it's exactly what we do in our newsletter. Not to the level of Buffett of course. But we do make a decent chunk of change.
Options trading is an excellent way to make money in the markets - if you know how to do it correctly.
I've written about a few strategies over the last year in this blog. Couple that with Buffett's prowess, and you've got a winning formula!
And here's the link again for my special report on piggybacking Buffett.
Send me any questions you may have. You can reach me here.