Warren Buffett – The Self Fulfilling Investment Strategy

Warren Buffett is an investing genius, that’s not to be doubted. He’s one of the richest men in the world–and was, in fact, the richest man in the world in 2008. But, I’m beginning to think that Warren Buffett of late is a self fulfilling prophecy. If you consider that in this age of technology, his trades are known within minutes of him making them, all around the world. There are entire investment funds built around following Warren Buffett’s trades, and mimicking them.

What does this mean for my theory? Well, given as smart as he is, he understands that these waves of followers could cause fluctuations in his trades, effectively performing the same actions as spammers when they send out investment emails–“Penny Stock, LLC is going to fly through the roof in 10 days, get in now!”–and this just makes Warren Buffett a wealthier man. I’m perfectly fine with this, by the way. I just found it an interesting thought, something to consider.

Are trades by such big names influential to the point of market fluctuations? I believe they are.

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