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The next Warren Buffett could be living next door,
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This review is from: The Warren Buffetts Next Door: The World's Greatest Investors You've Never Heard Of and What You Can Learn From Them (Hardcover)
In his 25 years at Forbes, Matt Schifrin has seen everything Wall Street has to offer and yet for his first book, Matt chose to write about "The Warren Buffetts Next Door." I am proud that Matt selected 7 Marketocracy Masters for his book.
I've spent the last 10+ years looking for great investors like Warren Buffett. People who can make money even when the market is flat or down. People who have the good sense to stop buying stocks when they are expensive and the courage to put money to work when everyone else is afraid.
Warren Buffett is proof that such people exist, and that they are extremely rare. However, even if Buffett is one in a million, in a country with 50 million investors there ought to be more than 1. Where are the other Warren Buffetts?
While reading Mr. Buffett's biography I learned that he got his start in 1956 when his friends and family invested a total of $105,000 - about $1 million in today's dollars -- in his first partnership. Not to take anything away from Mr. Buffett's achievements, but it may just be that the other Warren Buffetts simply didn't have friends and family who could give them the same start.
But then I realized that as long as the investment decisions are made in real-time, a track record of a model portfolio would help me to identify people of Buffett's caliber just as well as if it had been real money. Using model portfolios also enabled me to give tens of thousands of potential Warren Buffetts a chance to prove themselves thereby increasing the odds of finding the rare people I am looking for.
The people Matt chose for his book all have impressive track records - some as long as 10 years. In a market that has gone nowhere for the past decade, these people somehow found pockets of opportunity to make good money that almost everyone else missed. Matt's book gives me confidence that even if the market is flat over the next 10 years, there will still be opportunities to make good money and that it will be people using techniques like those profiled in the Warren Buffetts Next Door who will find them.