Don't follow the billionaires.
Copying successful investors doesn't always lead to gains.
From Infomoney
SÃO PAULO – Many investors in Brazil and around the world are interested in knowing how mega-investors like Warren Buffett, George Soros, or Carl Icahn are managing their money. However, imitating what these investors are doing is not always a good idea, according to columnist Bill Gunderson of the Market Watch website.
One of the problems Gunderson cites is the fact that the data released by investors is usually three months out of date. This means that this information may already be outdated, and the investments these billionaires made at that time may no longer be as good when the information is released.
Furthermore, at the time the information is released, it may not reflect the positions these investors still hold, also due to the time lag. The columnist asks: even if these are the current positions of the mega-investors, is it worthwhile to do the same as them? He himself has tried, but affirms that the results were not good.
Not to mention that even these investors make mistakes and questionable investments. Some of the stocks featured on the market gurus' list are Herbalife and Walmart. Regarding the former, Gunderson questions whether it's worth buying shares in a company currently embroiled in so much controversy, such as accusations of being a Ponzi scheme. Regarding the inclusion of the American retail chain, present on Warren Buffett's list, the columnist states that the company underperformed the market last year and has also recently presented poor results.
Therefore, it is important for investors to do their own research and make decisions based on what they believe. In Gunderson's opinion, investors should look at the company's numbers and the value of its shares – this is more important than knowing where Bill Ackman (a major hedge fund manager) is invested.
China and the sale of assets. Furthermore, analysts assess, "we believe that management is aware that the quickest way to generate a reclassification of shares is through the distribution of a larger dividend, which could make Vale the leading dividend distributor in its class," they emphasize.
Therefore, analysts maintained their overweight recommendation (above-average market exposure) for VALE5 shares, with a target price of R$ 41,00. They highlight increased optimism from both a top-down perspective (primarily analyzing the macroeconomic scenario) and a bottom-up perspective (considering the company's specific conditions), and view the stock as quite attractive.