“Free your mind and the rest will follow.” En Vogue

Warren Buffett’s wisdom is all over the Internet. Type the name “Warren Buffett” into the search engine at Amazon.com and a list of over 2,500 books comes up. Type in the phrase “Warren Buffett’s investment advice” in Google and over 1 million entries show up. So what can we possibly add to all that information about Warren Buffett’s investment advice? The honest answer is not much if anything. So why are we going to write this post then? Because sometimes the advice given by someone is so true and powerful that even endless repetition doesn’t reduce its relevance or wisdom. One such piece of advice given by Warren Buffett is “think like an owner” when contemplating investing in a stock. We believe that more investors would be successful if their investment process and analysis incorporated those sage words. What follows is a discussion as to why we feel this way.

In the Internet Age, the concept of investing and investment analysis has been reduced to sound bites and instant commentary (yes we did not use the word “analysis”) from financial TV talking heads, to financial and investment bloggers (no offense to our colleagues, there are a lot of good ones and we try and link to as many as we can), to web sites that aggregate investment information and news, to Stocktwitters, to virtually any other website even remotely connected to “investing”. When you throw in High Frequency Trading, ETFs and Discount Brokerage Trading Platforms, buying, selling or shorting a security has become nothing more than reacting to “new news” or an “investment theme”. When a “buy and hold” investment product like the SPY ETF can trade over 250 million shares in a day, something is seriously wrong with the capital allocation system called the “stock market”.

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