{"id":1926,"date":"2010-03-17T01:30:53","date_gmt":"2010-03-17T05:30:53","guid":{"rendered":"http:\/\/club.ino.com:80\/trading\/?p=1926"},"modified":"2010-03-16T15:43:00","modified_gmt":"2010-03-16T19:43:00","slug":"buffetts-dirty-little-secret","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2010\/03\/buffetts-dirty-little-secret\/","title":{"rendered":"Buffett's \"Dirty\" Little Secret"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft\" style=\"float: left;\" src=\"\/img\/sites\/ino\/email\/2466.jpg\" alt=\"\" width=\"200\" height=\"150\" \/>Warren Buffett is always a hot topic and today I've asked Greg Roy, who has a unique opinion on Buffet's strategies, to share what he calls \"Buffett's dirty little secret\". Whether you agree or disagree,\u00a0 Greg will certainly leave you with something to think about. Whatever your stance, we encourage you to comment below and dig deeper into Greg's reasoning with his <a href=\"http:\/\/broadcast.ino.com\/redirect\/?linkid=1326\" target=\"_blank\">latest report<\/a>.<\/p>\n<p>====================================================================<\/p>\n<p>They\u2019re missing the point.<\/p>\n<p>Nine out of ten \u201cgurus\u201d who tell you to \u201cinvest like Buffett\u201d preach that you should \u201cbuy great companies at a discount.\u201d<\/p>\n<p>And yes, on the face, that\u2019s \u201cwhat Buffett does\u201d \u2013 but completely overlooks the <em>real secret<\/em> to Buffett\u2019s investing genius.<\/p>\n<p>I\u2019ll be the first to admit I\u2019m no \u201cBuffophile\u201d \u2013 some of the blind adoration heaped on him in some quarters I find not only distasteful but propagates dangerous attitudes about investing and trading. But I do think he\u2019s as close to a genius as any investor in recent history.<\/p>\n<p>Because Buffett is playing a completely different game than everyone else.<\/p>\n<p><!--more--><\/p>\n<p>* There\u2019s a reason <strong>none<\/strong> of the fund managers who try to mimic his investing style can match him \u2013 no \u201cvalue\u201d fund really can do what he does\u2026<\/p>\n<p>* There\u2019s a reason <strong>none<\/strong> of the \u201cinvesting gurus\u201d who try to model his strategies can match his returns \u2026<\/p>\n<p>* There\u2019s a reason why <strong>no one<\/strong> has come up with a trading strategy that consistently performs as well as Buffett across all economic and market environments \u2026<\/p>\n<p>And it has <strong>nothing<\/strong> to do with how great of a \u201cstock-picker\u201d he is.\u00a0 I recently wrote a report detailing Buffett\u2019s \u201cDirty\u201d Little Secret explaining why he talks \u201cbuy &amp; hold\u201d but that has nothing to do with stocks. And why investors who got suckered into it have gotten their butts handed to them over the last few decades.<\/p>\n<p>The fact of the matter is: Buffett has built his success on a frame-work of \u201cfree money\u201d \u2013 even though he tells people never to invest with other people\u2019s money that\u2019s exactly what he\u2019s done since the beginning.<\/p>\n<p>From his first partnership where the majority of his money came from investing his partner\u2019s money to the unique \u201cfloat-centric\u201d business model of Berkshire-Hathaway where he gets to buy companies using insurance premium money.<\/p>\n<p>Buffett\u2019s innovation is a business model where cash is his competitive advantage. He\u2019s so successful because he does what I call \u201chyper-compounding\u201d \u2013 he uses money to get more \u201cfree money\u201d which he then invests into more cash-producing assets.<\/p>\n<p>If you read his last shareholder letter you know he explained, \u201cThe engine behind Berkshire\u2019s growth \u2026allows us to enjoy the use of free money \u2013 and, better yet, get paid for holding it.\u201d<\/p>\n<p>He makes money six ways from Sunday on every investment.<\/p>\n<p>For instance; did you know Buffett risked more money on an options trade than he laid out for Burlington Northern railroad \u2013 his biggest purchase ever? It\u2019s true \u2013 he risked $37 billion because of the \u201cfree money\u201d side of the equation which gave him close to $5 billion in free money to play with.<\/p>\n<p>But investors keep getting fooled by all of the talk \u2013 they don\u2019t see that \u201cbuy &amp; hold\u201d is Buffett\u2019s ace in the hole in the favorite poker game of Wall Street Whales \u2013 it\u2019s not an investing strategy for you and me. I explain why in this report: Buffett\u2019s \u201cDirty\u201d Little Secret<\/p>\n<p>Warren Buffett\u2019s spectacular track record is the elephant in the room for investors and traders. Love him or hate him, everyone seems to feel the need to understand his success -$10,000 invested in 1965 would now be $80 million.<\/p>\n<p>But in that process I advise you to think for yourself.<\/p>\n<p>Look at the facts and see if you agree with me it\u2019s smarter to do as Buffett does, not as he says. Obviously, not all, or even most, of Buffett\u2019s \u201cfree money\u201d strategies are open to us \u2013 unless you buy an insurance company outright \u2013 but a few of them are.<\/p>\n<p>And I for one think that\u2019s worth understanding.<\/p>\n<p>Greg Roy<br \/>\nPlease grab my free report on <a href=\"http:\/\/broadcast.ino.com\/redirect\/?linkid=1326\" target=\"_blank\">Buffett HERE<\/a><\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>Warren Buffett is always a hot topic and today I've asked Greg Roy, who has a unique opinion on Buffet's strategies, to share what he calls \"Buffett's dirty little secret\". Whether you agree or disagree,\u00a0 Greg will certainly leave you with something to think about. Whatever your stance, we encourage you to comment below and [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[3083,2671,3086,348],"class_list":["post-1926","post","type-post","status-publish","format-standard","hentry","category-general","tag-buffetts-dirty-little-secret","tag-greg-roy","tag-hyper-compounding","tag-options"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v23.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Buffett&#039;s &quot;Dirty&quot; Little Secret - INO.com Trader&#039;s Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ino.com\/blog\/2010\/03\/buffetts-dirty-little-secret\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Buffett&#039;s &quot;Dirty&quot; Little Secret - INO.com Trader&#039;s Blog\" \/>\n<meta property=\"og:description\" content=\"Warren Buffett is always a hot topic and today I&#039;ve asked Greg Roy, who has a unique opinion on Buffet&#039;s strategies, to share what he calls &quot;Buffett&#039;s dirty little secret&quot;. 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