Want to be Warren Buffett But Too Lazy?

Not that many years ago, it seemed that every kid on the basketball court wanted to be Michael Jordan. They worked hard, in their imagination, at recreating his game-winning shots. But, as many basketball coaches/motivators were fond of pointing out, not one-in-a million were willing to do what it takes to be a Michael Jordan. His work ethic in the weight room and at practices was legendary. At practice, he insisted that the best defender on the team (Scottie Pippen) be on the side that he was scrimmaging against. He always wanted to go against the best.




In the same way in the investment field, there are many who want to be the next Warren Buffett. But how many are willing to do what it takes to be a Warren Buffett? Buffett talked his way into Columbia Business School to study under the legendary Benjamin Graham. Classmates said he knew Graham and Dodd's "Security Analysis" classic better than the authors did. Question:  How many are willing to do what it takes to be Warren Buffett? How many of you know the text better than the authors?

Since I don't see any hands up, consider an easier approach - sort of the video game version, I guess, of recreating a Michael Jordan game winner.

According to Russel Kinnel, Morningstar's Director of Mutual Fund Research, as listed on page 59 in "FundSpy," the following funds  are "Buffet followers:"  the Sequoia fund (SEQUX), Fairholme Fund (FAIRX), Dreyfus Appreciation(DGAGX), Oakmark (OAKMX). Returns over the past 5 years on these funds have ranged from 3.36% to 9.08%. Interestingly, the fund with the highest turnover (71%) (I know...don't ask me how a "Buffett follower" would have a 71% turnover rate)  had the highest return.

Kinnel points out that, as many do, you can always buy Berkshire Hathaway shares.

All of this is out of my "there is more than one way to skin a cat" file. I am a proponent of low-cost index funds as the way to invest for DIY investors for at least 80% of their  retirement funds. The easiest thing in the world is to pick out past winners. As a point of fact, Buffett himself has said,

"Most investors, both institutional and individual, will find the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals."

Disclosure:  I hold none of the funds mentioned here and do not endorse or recommend them. The information is solely for educational purposes. Individuals should do their own research or consult an advisor before making investment decisions.