Dennis Gartman Idiotically Insults Buffett

Gartman: Warren Buffett Is An Idiot


Gartman is more of a trader than fits my style but he has sounded fairly reasonable in media appearances. But then he started popping up regularly on CNBC's Fast Money show, which suggests he's more of a self-promoter than a serious thinker. In any case, his insult of Buffett is completely asinine and reflects poorly on Gartman.


Apparently, his main beef with Buffett is Buffett's adherence to buy-and-hold, which as we all know by now is obsolete and dead (yes, that was supposed to be sarcastic). Gartman also has a short call on Berkshire but really, this is unrelated to Warren Buffett's alleged idiocy unless Gartman is shorting it due to management incompetence (history suggests otherwise). The article then goes on to reveal that Gartman is wrong on two-thirds of his trades. Yes, that means Gartman is wrong 66% of the time! He says he still makes money ostensibly by cutting losses quickly and letting winners ride.


I find a slogan from my old computer programming days helpful in the debate between investing vs. trading: when it comes to making money, there's more than one way to do it. So really, the issue of buy-and-hold vs momentum trading is a moot question. The true question is which style suits your personality. The better your investment strategy suits your character, the more likely you are to maintain the discipline needed to generate good results. None other than the idiot (savant) himself, Warren Buffett, holds that the key to investment success is knowing yourself.


Personally, I find my temperament takes quite well to a value investing philosophy. It speaks to my strong points such as a curious, analytical mind and a propensity towards frugality. Ever since childhood, I drove people batty with my neverending questions and I hate paying full price for anything. It also addresses my weak points like impatience and an impulsive streak. Following a value discipline slows me down and forces me out of rash decisions. In a way, value investing is almost boring. As Buffett puts it, I spend most of the time with the bat on my shoulder and that's a good thing -- I couldn't handle the constant being on edge that would go along with trading.


But that's my path. It may not be yours. As always, YMMV.


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Davy Bui

http://www.completegrowth.com