The World’s Top Investors’ Investment Strategies: Learn from Buffett, Soros, and Rogers
Which American brand is good for investment?
Recently, U.S. stocks have risen steadily. What do the famous investors think about this new trend? We will explore three world-famous investors’ views: Warren Buffett (87 years old) who is also known as the “God of Investment”, George Soros (87 years old) who triggered the failure of Bank of England, and Jim Rogers (75 years old) who is famous for his “Global Macro Investment Method.”
Read on to find out their insights on the current economy and which American brand is the best buy in 2018.
Buffett enjoying flexible ideas, Soros converting after failure, and Rogers diversifying investment
The U.S. investment company Berkshire Hathaway’s CEO, Warren Buffett, dubbed as the “Oracle of Omaha”, was largely confident in the steadily-growing U.S. economy, with an increase of 3% between July and September last year (on a preliminary basis). The U.S. stocks that Buffett mainly invests in have shown fantastic growth, aiming at $24,000 on the Dow Jones Industrial Average. With this, many experts have projected that a “Goldilocks Market” is presently on the way.
Buffett, who is well-known as a “value investing” lover, complained about the lack of new investment targets, saying in an interview in late August last year: “Stock price is not as low as it used to be due to a long-term bull market which has continued for several years.” Value investment is an investment strategy for buying more desirable assets when they appear underpriced.
Having said that, his cheap-bought stocks and business have successfully generated good profits. However, Berkshire Hathaway thinks it is a concern because cash of nearly $100 billion that they owned between April and June in last year got stacked, as proper underpriced stocks were not in the market.
A good American economy and his belief that “considerable financial investment should not be reserved for a long time,” has brought a luxurious hardship on him. If the “Trump Market” is formed, he will change his plan at any time, no matter what he believes or supports.
In contrast, Soros, CEO of Soros Fund Management, a well-known hedge fund, has done short selling ever since Mr. Trump was elected as the U.S president in November 2016. His political beliefs against Trump appeared to be a drive for this move.
Soros predicted prior to the election, saying that “the U.S. stock will decline,” but it has never hit the mark. The stock price has been rising by over 20% since Trump won the election. Against the market trend, Soros has continued to experience short-selling. In August, the loss started to increase, but he never stopped it.
At the end of September last year, it was revealed that he sold the majority of his possessions, and eventually, he withdrew from the market due to an unbearably large loss. Afterward, Soros changed his stance, admitting the strength of the U.S. economy and the market.
On the other hand, Rogers has enjoyed verifying his investment portfolio. As with the U.S market, he stands between Buffett and Soros. He said that Japanese, Chinese and Russian stocks are underweight. Sooner or later, the U.S. stock will be sold as it is too high. Although it depends on the brand and timing, it could be different. If the U.S stock declines, FRB will step forward to help.
Rogers recommends Japanese stock, saying: “an asset purchase brings buyers benefits, such as ETF,” adding that “Abe administration will do anything to maintain its stock price.”
Chinese stock is also his favorite as he predicts that as long as the global market grows steadily, the Chinese economy will have a brighter future, which will drive to raise its value. Another push is for Russian stock. He pointed out the reason: “It has started the recovery from recession.” Regardless of that, China has massive debts, or Russia suffers from a volatile crude oil price. For these reasons he suggests taking a risk and buying Chinese or Russian stocks.
As you can see from this article, the world’s three big investors’ insights are different. Buffett buys desirable assets, saying, “Investment in the U.S stock is getting less attractive, but it is more beneficial than buying the bond.”
After losing his assets, Soros agreed on the strength of the “Trump Market” and has continued to purchase foreign stocks, hoping that the FRB will help the market in the event of a big drop. To be a winner, you need to compromise, holding back your beliefs and feelings.
More advice from Buffett and Rogers is that, “Bitcoin is in bubble, and you should avoid it.”
Which American brand is the best buy? Prediction from top investors’ insights
Which American brand could be the best buys?
Take Buffett as an example: he said, “One of my assistants sold our Apple shares, but I have been increasing the brand.” In fact, once Apple’s shares declined, but increased again. Buffett’s patience and brilliant insights ended up with benefits. Therefore, Apple stock may be one of the best buys.
On the other hand, he keeps American airline stocks, though it has been suffering from soaring of crude oil price that has affected its business environment. What you can learn from him is “patience”.
On the contrary, Soros has been enjoying significant benefits from investments in cable TV dubbed as “Trump Brand” and “Liberty Broadband,” an Internet provider. According to him, after the FCC abolishes the current network rules, internet providers will raise the current fees depending on the service that the content providers opt for. With that, internet providers’ profits will increase. If so, another best buy could be the internet providers dubbed as “Trump Brand.”
“Patience” exemplified by Buffett and the “Trump Brand” that Soros purchased may be worthwhile investments in 2018.