December 31st, 2012 10:15 PM by Eric Fang
It has been a great year on stocks formost investors. S&P 500 was up 16%.And I beat it this year by quitegood margin.
The returns was good just because I investedheavily on financial stocks, and builder stocks.The most important changes for this year was thatthey also paid dividends.
We went to San Francisco Union Square today.And I read Warren Buffet's 2011 Letters to theshareholders. I know a lot of people wants to copyhis style, but It's almost impossible:1)He made most of the money from the (re)-insurancecompanies he owned. He used those free "floats" tomake extra moneys on the investent returns.
2)His main strategy was to purchase the companieswith great value, and then generate more revenuesunder his management.
3)His investment on the individual stocks was77B/48B(since the purchase). Still very impressive,plus the dividends he collected over the past years.
4)About Gold and other investment. Here is the paragraphfrom his 2011 Letter to shareholders:He prefers the investment in productive assets, whether businesses, farms, or real estate. Ideally, these assets should have the ability in inflationary times to deliver utput that will retain its purchasing-power value while requiring a minimum of new capital investment(see page 18 of 21)