8/1/07

Buffett, a demographic Investor?

An excellent article on the unknown side, rather the unpublicised side of Warren Buffet's investment. The analysis by James Altucher of Buffett's investment style caught my attention.

"Most people make the mistake in thinking that Warren Buffett is a value
investor," says James Altucher, founder of the financial website Stockpickr.com
and author of Trade Like Warren Buffett. "Buffett is what I would call a
demographic investor. He looks for broad demographic trends that reach out over
not just the next six months or six years but over the next 50 years."
Buffett's recent purchases of healthcare stocks like Johnson & Johnson
and Sanofi-Aventis are a bet on the aging of the baby boomers, Altucher says.

Even Buffett's foray into the humdrum world of railroads—Burlington
Northern Santa Fe, Norfolk Southern, and Union Pacific—may actually be a bet on
rising China and its need to import agricultural commodities from the American
Midwest. That food must be shipped west before it can make its way to Asia. "

To a layman like me Buffett's investments makes sense. Are there any naysayers out there?


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