Why copying your portfolio is dangerous

Why copying your portfolio is dangerous
Warren Buffett

If you want to imitate the style of a stock exchange guru, there are a few things you should consider.

(Photo: Bloomberg)

Düsseldorf Warren Buffett is considered the most famous living major investor. When Berkshire Hathaway buys the major stock of a private equity firm, it carries a seal of approval.

That’s why many private and institutional investors imitate Warren Buffett’s Portfolio, But does it mean anything? Handelsblatt analyzed 37 of its new investments since 2016 — with one surprising result. Eight insights can be gained from evaluation:

1. Never trade the day after you buy Warren Buffett

Buffett’s purchases, unless they exceed a reportable threshold, are issued six weeks after the quarter’s end (next time on May 16). The next day, the imitators ensure a jump in prices in almost all cases.

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