Most people think Buffett’s investment skills are GOAT.
They try to replicate but it’s extremely hard.
Actually, even if people can invest like Buffett, they can’t replicate his success. There are other contributors that are less obvious.
- most people don’t have low-cost capital. Your margin account is priced at above prime rate.
- most people don’t have more bullets each year, as Buffett’s insurance business (float) is growing each year giving him more money to invest and add to his positions. Thus, when he can buyout the company if needed, most other people can’t.
- most people don’t have access to mgmt. When you are Buffett, other people offer you the information in a very accessible manner. And if you are big enough, you become a board member.
- most people don’t have enough tax knowledge. Buffett is obsessed with lowering tax legally.