Why You Should NOT Follow Warren Buffett’s Investment Advice

Daily Chart August 10 2015

8/10/2015 – A positive day with the Dow Jones up 241 points (+1.39%) and the Nasdaq up 58 points (+1.16%)

Warren Buffett believes you should be fully invested. WARREN BUFFETT: Stocks are going ‘a lot higher’

Buffett reiterated that he was a long-term investor, saying he expected prices to be “a lot higher” 10 years or 20 years from now.

No one is questioning Mr. Buffett’s investment acumen here and I would have to agree with his analysis. My own mathematical and timing work shows that the stock market will be much higher 10 years from now. That is not the question. The question is, are you able and/or are you willing to take a 30-50% haircut over the next 2-3 years?

If your answer is NO, understand the following two points.

  1. Mr. Buffett and Berkshire Hathaway are “The Stock Market”. Meaning, even if he was inclined to get out, he wouldn’t be able to. As a result, there is no point in being bearish or telling others to get out.  Instead, consider this WSJ ‘Buffett Indicator’ Flashes Warning for Stocks
  2. The difference between Mr. Buffett and most investors is so vast that people should be very careful when listening to a simple “buy and  hold” investment advice, even from the man himself. As far as I know, no one has been able to fully replicate his success.

That is to say, Mr. Buffett’s advice is right on the money, but only if you are willing to take a massive beating over the next 2-3 years.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years.  If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. August 10th, 2015  InvestWithAlex.com

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