Stock markets often behave in quite an inexplicable way. Just like recently, when Warren Buffett’s announcement to buy 75 million of Apple shares made the stock price rise almost immediately. Of course, Buffett is not just anybody. The Oracle of Omaha is one of the most successful investors of all times. If there is a company he is willing to invest such a big amount of money into, there must be good reasons for that.
In fact, Buffett’s capability to foresee stock market development in the future is quite astounding. To be sure, he is not always right with his predictions. But on the whole his bets mostly turn out to be more successful than anyone else’s. One of the secrets behind his success is his principled approach to stock market that goes for long-term investment and avoids speculation. The other one is Buffett’s capacity to take into account an incredible amount of data when it comes to making investment decisions.
Buffett himself always points out that he spends a lot of time reading. The information that he (and his team) extract from things they read allows them to analyse the economy in a much more comprehensive way most people do. Unlike many decision makers, Buffett focuses not only on industry data, but also on macro-economic developments and socio-political trends. To put it plainly, he just controls more information than you.
The good news is that there is basically nothing that prevents you from doing what Warren Buffett does. Of course, it will take some time to get a feeling for the major trends that might be important for the future development of a company or an industry. Even Buffett was not good enough to see Google come. Yet, it is definitely worth trying. The sooner, the better. Just do it!