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Questions about Warren Buffet's Theory?


1. Does he believe any bit in technical investment?
2. Warren Buffest said that the best time to sell is never. But how are going to make a profit without capital gain if the stocks don't give out dividends?

Thanks!

Re: 1. I wouldn't think so - in fact, I'm pretty sure he has come out strongly against it.
Re: 2. Buffett does buy many stocks that pay dividends, and he does sell stocks from time to time. You should note, however, that he doesn't lead a very lavish lifestyle so he doesn't need to sell his holdings to finance much - this isn't so much a hard and fast rule as general advice.

The only technical info he needs is to figure out the value of the company. He looks for companies who's value is not reflected in the stock price so charts and past values are useless.

1) No.
2) If you have $1,000,000.00 USD in stocks then you can borrow another $1,000,000.00 USD to buy stocks on credit but if you wait a few years until your stocks are worth $2,000,000.00 USD then you can borrow another $2,000,000.00 USD to buy stocks on credit. As you can see as the years pass your credit lines gets bigger and bigger and you buy more and more stocks and by the time you are 45 you are a billionaire.

Not exactly rocket science.

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