Why a small investor shouldn't be following Buffet
In a recent interview about the Burlington Northern acquisition, investing guru Warren Buffet admitted that he did not receive a huge discount in his purchase of the railroad. He stated that "solid returns are sufficient". He has also recently mentioned that he could return 50% easily in the current market, if he were dealing with $1 million or less.
Shouldn't that be the target (or better) of a small investor (50%)?
Buffet buys into large companies because he has to find a place to put $34 billion dollars. When you are trying to find a good place to put $3400, there are many many more options that have much better growth potential. In the scheme of things, such a small amount does not have enough of a presence to influence the stock up or down by itself. You can fly under the radar and pick price points of entry and exit that are far superior to someone looking to move large amount of cash into or out of a position.
Remember that when you're contemplating the investment strategy of "If it's good enough for Buffet, it's good enough for me". Use your competitive advantage of invisibility.
Good enough for Buffet is not good enough for me. Not by a LONG shot.