Monday, November 19, 2007

Invest like Warren Buffet - How to pick the right stocks

Invest like Warren Buffet - How to pick the right stocks

Are you tire of trying to pick the right stocks. Just buying whatever billionaire Warren Buffett bought might be a great way to go. You don't even have to buy it the same day. Even if you bought months after his share purchases, you could still get up to twice the return of the Standard & Poor's 500 Index during the past three decades.

For example, investors would have earned an annual return of 24.6% by buying the same stocks as Buffett after he disclosed his holdings in regulatory filings, sometimes four months later, according to a soon-to-be-released study by Gerald Martin of American University in Washington and John Puthenpurackal of the University of Nevada-Las Vegas. The S&P 500 rose 12.8% a year in the same period.

It is really hard to beat the pants off the S&P 500, however, by following Warren's buying and selling," said Mohnish Pabrai, who manages $600 million at Pabrai Investment Funds in Irvine, Calif, you can. So how do you find out what good old Warren is buying? Check out for a list of Warren's latest stocks.

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