Today we're going to be talking about the Warren Buffett effect and why I agree and why I want you to avoid it. Okay so what I think of like the Warren Buffett effect and the Warren Buffett model. Um, it's really what got me started in trading. so um just a real quick bio.

So I I I started a business right out of high school I was a a tech entrepreneur so I really didn't trade for about 10 or 12 years. Uh, basically started the business 94 95 didn't start trading in 0 till about 0405 and people ask you why? Well I was building a business, I was working 100 hours a week and I was broke. Okay because it was a startup. Basically every dollar we made went back into the business.

So fast forward to 2005 2006. Two things happened. The business was now a decade old. um I had some employees so I didn't have to work a 100 hours a week and it was profitable.

So basically the two things happened was I now had some time and now had some money. Okay, cool, awesome. Okay I didn't have those things for the decade before I had neither. Okay, didn't have any time, didn't have any money so I'd always been interested in trading literally going back to elementary school high school.

I' I've been reading the Wall Street Journal I I always wanted to know like you know and obviously I lived through the do com boom. we were a technology company I mean we were installing 3om products Northern Telecom products. Okay Avia you know some uh MCI WorldCom data circuits. you know a lot of these these uh Lucent technology modems kind of like if if you're old like me you'll remember a lot of these names that were these High Flyers during the doom boom and all crashed and burned together.

90% of them are out of business Etc but I didn't trade those companies or trade the Do Com boom because I was too busy installing their products and building networks and doing all this stuff. So that's why I didn't trade the Doom Boom but I was still watching it I was like wow look at these stocks move I mean you know th% Runners and 10,000% Runners and all this Mania so any anyway I missed that I was just too busy and 056 now I got some money and I got some time. So I start looking to trade and always had respected Warren Buffett um and obviously made a lot of money in the markets and I started following what they you know what's traditionally called like the Warren Buffett model and and and if you research that you'll know like Warren will tell you you know if if you if you love your Chevy truck we we'll buy some General Motors if you if you love your iPhone buy some apple. if you love Cocacola buy some Coca Cola and so I started doing that I kind of started you know I' traded some apple a Big Apple Fan going all the way back to my Apple 2 in the 80s.

Um, you know, trading some of what I would call these real stocks and what's crazy is and I look back I was actually really good at it. like like I was a really good stock picker. I I I think for and I know I can't I struggle sometimes to explain this? but I think I am blessed with some sort of just like natural ability when it comes to the stock market. and I don't say that to brag.

it's just like I mean I was literally in elementary school in the 80s looking at stocks like there're just like I'm I think I'm just wired for this in some way. but anyway, I you know I I trade all these real companies that I believe in that I use that I you know the products and stuff and I get to the end of the year and I have this crazy win rate. like an amazing win rate. but the gains are just.

you know, we're talking single digit percentage across the board and then I look at the S&P 500 and you know let's say the S&P 500 is up. You know 8% and I'm up 7% So I'm like okay, I spent hundreds of hours this year, maybe thousands of hours trying to, you know, do this on my own and I proceeded to basically maybe meet or even lose to the S&P 500 and I could have just put my money in an index fund and done zero work like zero. I could have giving it to Vanguard or whatever and just did nothing and I would have made the same amount of money. So I'm like forget this So that's the point with the Buffett model is I think it works.

It worked for me, but it only works if you got Warren Buffett money at the end of the day like you look at the money he makes, but he's trading billions of dollars if hey, I'll take 7% on 10 billion. Not a bad payday. Okay now most of you and you go back to when I got started. You know I started trade even though I was doing well with the business I started out with a small stake I You know I I I knew that there was a good chance that you know I'd blow up or bad things would happen.

So I started out with a small stake and I'm guessing most of you are starting out with a small stake. Whether you're doing it because you want to or because you have to, probably a lot of you have to. So I'm like, well, this is pointless I'm wasting my time I'm burning hours and hours and hours for basically nothing I mean literally nothing even though I made money, I could have just put it in that Index Fund So then I came to penny stocks and day trading. Found a book by Tim Sykes called the American hedge Fund.

um I think I was one of the like I think I bought it like that second day it was released and it was luck I I was buying every trading book I could and it came up in the Amazon recommendations like hey, there's a stock trading book So I read that book and immediately find out about penny stocks, day trading, short selling. all of these strategies that are kind of mainstream today like it's kind of funny. A lot of you might be surprised but you go back to you know this is now probably 07 is maybe 08 is back then like it was day trading penny stocks Short Selling Penny Stocks like a lot of this stuff was just like nobody knew about it and even if you did know about it even less did it like and here I'm looking at this I'm like this is the most consistently repeatable strategy out there. This is where all the opportunity is.

So once I learned to avoid that traditional Buffet model of trading boring stocks that you believe in and recognizing the momentum and the and the the the manipulation and and the volatility of these stocks now I can make Re I can make 20% in five minutes I make 100% in an hour now I can move the needle and actually quote unquote, make real money So that's about 2009. That's when I really found, finally found true success in the market is once I remembered or once I learned. Forget this Buy and Hold crap day trade Momentum baby. Now you got to know the patterns.

You got to know the setups, you got to know the stuff to look for and what. And the best way to do that is to check out the Daily Income Trader system down below. There's going to be a link to the Daily Income Trader system webinars six times a day every trading day as well as on weekends. I think two a day on Saturday and Sunday and they start out early and they go late in into the night I think the latest one is 9:00 p.m.

Eastern and they're 100% free. That's the thing. So click that link book a time that'll work for you. whether it be tomorrow or the next day.

you'll get the calendar. It'll be right there and live again. 100% live and you're seeing the system play out in front of you. So that's the best way to recognize the best stocks we use.

Oracle Every day we use breaking news, we use the chart patterns that we trade every single day and I tell you when it comes to moving and I don't really call care what size Account: small, medium, intermediate. If you're really trying to move the needle, you can trade the buffet model you can watch CNBC you can watch the mainstream media and you're going to be up single digit percent after a year and probably spend hundreds or thousands of Dos like I did. Or you can learn how to spot volatility. Learn how to spot Catalyst Learn how to spot hot sectors.

Learn how to spot chart patterns. That will we. That's what we do every single day. The best way to do that? Check out the daily Income Traer system and we'll see you there.