Comments on: Difference between Warren Buffett and Peter Lynch

By: Frank

Frank — Mon, 31 Aug 2009 10:29:05 +0000

For what warren buffett means “the lower the price, the lower the risk”, he hasn’t literally said this… and intuitively what he meant should be understood in a relative term, the lower the price compared to the intrinsic value, the higher the margin of safety, which means lower risk of losing money. Of course, there are so many other factors that would affect the value of a company, that is why Buffett only invested in business that he understands and the profitability of the company can be predicted, with long history of consistent good cash flow, high return on invested capital, that leads to his emphasis on economic moats (or competitive edge) the company has to sustain the high ROIC. Then, let the law of compounding return rolls to create magic.

By: Cometh

Cometh — Sat, 14 Mar 2009 04:58:57 +0000

Warren Buffett is way way way richer….

Nuff said….

Warren Buffett wins…

Ahem…

By: sanme98

sanme98 — Fri, 13 Mar 2009 13:45:45 +0000

If compare with annualized return, Peter Lynch return is much higher than Warren Buffett. Buffett is one of world richest man is because he start as early as 11 years old already start investing.

In personally, I prefer Buffett investing style, and think Peter Lynch investing style is too hard to learn for mediocre investor like me

By: larry

larry — Thu, 05 Mar 2009 06:32:17 +0000

Lets say you want to buy IOI Corporation shares and it is now RM3.60. It would be a lot less risk if you buy it at RM2.00 compared to buying it at RM3.60 I guess. This is the Buffett concept of risk.

By: Ari

Ari — Wed, 04 Mar 2009 14:16:06 +0000

i agree with donna Shellout, What i understand one of WB philosophy are Fair Price.

By: Lisa

Lisa — Wed, 03 Dec 2008 11:54:52 +0000

if i am not wrong Buffet earns more than Lynch

By: Neo

Neo — Wed, 03 Dec 2008 08:26:44 +0000

Buffett who?

By: JC

JC — Wed, 03 Dec 2008 03:38:08 +0000

WB is one of my idol. I think he is not only good at investing but he is also wise and good at predicting human nature. He recently said “Be greedy when people are fearful and be fearful when people are greedy.” So so so true. Right after that he invested in GE and Goldman Sach couple of months ago. We cannot use his model on investment because the stocks he invested are preferred stocks with good dividends returns yearly. We do not get that privileges….I guess there is an advantage being WB. And lastly…he believe in investing in US companies now.

By: John

John — Tue, 02 Dec 2008 16:32:28 +0000

Bursa is small & not mature therefore cannot apply same rules like that of Wall Street. Furthermore many big companies in Bursa are semi government and being run like government dept.

By: Donna Shellout

Donna Shellout — Tue, 02 Dec 2008 14:03:28 +0000

First of all I don’t believe Buffet ever said this, but if it’s true that Buffet believes “the lower the share price the lower the risk” then he’s actually a lucky clown, for two clear reasons.

First, the statement is empirically false. If it were true, then penny stocks would be a lower risk. In fact, they are the most risky stocks. But even if you carve out an exception for penny stocks, it’s still not true. Lower priced stocks are not lower risk than higher price stocks. And if Buffet is so stupid to believe they are, he doesn’t deserve to invest other people’s money.

Second, his own company, Berkshire Hathaway, is one of the highest priced stocks on the stock exchange. Would he be so stupid as to design stock picking criteria that his own company fails to meet? If true, then he’s a clown and a circus dog.