Warren Buffett gets it in the neck every now and again. Why?
Because he is quite simply one of the best investors of our time. So, whenever he underperforms the market, there are plenty of people out there who love to take a pop at him. But he is used to it.
During the dot-com years, Buffett was accused of losing his touch. Around the time of the Millennium, growth stocks were taking the market by storm. Traders could hardly put a foot wrong with almost every IPO guaranteed to fizz on day one.
It was almost as good as a licence to print money. But Buffett was happy to sit out the stock market mania. His investing philosophy is simple: It is easier to stay out of trouble now than to get out of trouble later.
But with every day that tech stocks went up, Warren Buffett’s investment vehicle went down. It was a torrid time for some of the Sage of Omaha’s ardent followers....