- A look at what Buffet has been buying and selling lately gives us a few clues about how to spot good investments.
- What we can also see is his investment psychology, which has been the key to his success.
- With $106 billion in cash and new dividends coming in constantly, you have to be a net buyer.
Buffett recently said that he’s a net buyer of stocks. Many took that as another bullish signal for the whole stock market, but you should be aware that Buffett doesn’t usually buy what others are buying.
A year ago, we analyzed how Buffett was buying stocks but not the market. He was buying Apple (NASDAQ: AAPL) and airlines which all had PE ratios way below the market’s and in the single digits. More →