Day Trading Stocks & Futures

[Somatung]

re: Day trading Nifty & Banknifty Futures

Source of information please!!

as far as I know buffett hates leverage, he use geiko's reserve capital to invest after approval of berkshire hathway's shareholder ofcourse, but he don't use leverage.

You have to get in touch with them: http://www.nber.org/ or with them: http://www.aqrcapital.com/AboutAQR/FirmOverview.aspx and ask for an English translation about: Success formula about Warren Buffet investments

 

[Einstein]

re: Day trading Nifty & Banknifty Futures

You have to get in touch with them: http://www.nber.org/ or with them: http://www.aqrcapital.com/AboutAQR/FirmOverview.aspx and ask for an English translation about: Success formula about Warren Buffet investments

thanks buddy, but sorry to say this is not a valid source, I have done extensive research on berkshire hathway portfolio, their major holdings including walt disney, coca-cola, petrochina, dish and so on. i have read almost every book written on buffet and peter lynch. and i can assure you he don't use leverage. but take money from his insurance subsidary and invest them into stocks. you can call it leverage, because money is not really his money. but its better then investing into treasuries as 90% of other insurance around the world do.

 

[arcus]

re: Day trading Nifty & Banknifty Futures

As some members mentioned Warren Buffet in this thread, here some thing you should know about the man:

Warren Buffet is not what he seems to be. Why? Do you know how his investments work or are done in reality? FA is only part of that and all the rest is: Investing on margins, means on credit. What is that? You lend money on the actual portfolio you run. WB is doing that with 60% on his actual value of his portfolio = For each 100 USD he has on real value, he uses credit of 60 USD. So he is doing business with a value of 160 USD by having in fact only 100 USD. In that way he gets a much better return on any investment.

As every body talks how secure and how much FA oriented that Sir works, this shows that this is not the fact or only part of the true story behind him. The risk those pro takes is incredible high. To make it clear: If you want to act or trade like WB, you need to trade at every time on your maximum risk by even using credits you got on your house or shares. Only for absolute pros and only for hard core investors and traders which follow there MM at any time, what ever happen.

Its a known fact that buffett uses leverage. His main business in Berkshire is insurance. In Insurance, you get a lot of premium and he uses it to invest in equity. Apart from that he has quite a bit of exposure in options. He has written billions of dollars of put options on the US stock indices.

He however uses fundamental and macro-economy analysis for his decisions. He does not use technical analysis.

 

[Somatung]

re: Day trading Nifty & Banknifty Futures

thanks buddy, but sorry to say this is not a valid source, I have done extensive research on berkshire hathway portfolio, their major holdings including walt disney, coca-cola, petrochina, dish and so on. i have read almost every book written on buffet and peter lynch. and i can assure you he don't use leverage. but take money from his insurance subsidary and invest them into stocks. you can call it leverage, because money is not really his money. but its better then investing into treasuries as 90% of other insurance around the world do.

Edit: I just see that Arcus also posted on Warren Buffet and our post's are now some how a bit a cross over. Take this post as a second opinion to what Arcus has posted

Did you check the newest business report from Berkshire Hathaway? If so, what about the total value of investments from Berkshire Hathaway compared to the actual net value of Berkshire Hathaway. The report I have seen spots on that specific numbers and takes the solution that even in the past leverage was used to get the best return on investment. An other point is his option trading which is part of his business.

Some question surely occur if the official story told about him is finally the real story about him. Maybe he was never interested to show it in the last details. He maybe was not interested to let know outsiders in detail what he did and how he did it. In that way people who wanted to copy him never had the chance to do so. If you would be as successful as him, wouldn't you act the same way to hide your success formula like he did?

Never mind and happy to meet a member which has followed and studied the man and his investments in detail. As soon as I have more on that subject, I will let you know and post in your thread, as this thread is about Nifty Future trading. Until then I wish you a very happy Christmas evening. The same I wish of course to Arcus and all the other members here.

 

[TraderRavi]

re: Day trading Nifty & Banknifty Futures

Expect about Day trading nifty futures, everything is discussed..:lol::lol::lol::lol::lol:

nice to see more and more active participation from traders.

not true , many posts regarding NF , BNF including pratap's charts many times during trading hours , and of course other topics posts also. now wat else you want

 

[TraderRavi]

re: Day trading Nifty & Banknifty Futures

not true , many posts regarding NF , BNF including pratap's charts many times during trading hours , and of course other topics posts also. now wat else you want

of course ST's guiding posts , sudoku's psychological posts and many other stuff , now wat else you want

 

[DSM]

re: Day trading Nifty & Banknifty Futures

Here's Forbes on Warren Buffet :

http://www.forbes.com/sites/timwors...-explains-warren-buffetts-investment-success/

“Berkshire Hathaway has realized a Sharpe ratio of 0.76, higher than any other stock or mutual fund with a history of more than 30 years, and Berkshire has a significant alpha to traditional risk factors. However, we find that the alpha becomes insignificant when controlling for exposures to Betting-Against-Beta and Quality-Minus-Junk factors. Further, we estimate that Buffett’s leverage is about 1.6-to-1 on average. Buffett’s returns appear to be neither luck nor magic, but, rather, reward for the use of leverage combined with a focus on cheap, safe, quality stocks"

Some more from Forbes : Explaining The Secret Of Warren Buffett's Success: Double Leverage

http://www.forbes.com/sites/timwors...t-of-warren-buffetts-success-double-leverage/

“Without leverage, however, Mr Buffett’s returns would have been unspectacular. The researchers estimate that Berkshire, on average, leveraged its capital by 60%, significantly boosting the company’s return. Better still, the firm has been able to borrow at a low cost; its debt was AAA-rated from 1989 to 2009.

Edit: I just see that Arcus also posted on Warren Buffet and our post's are now some how a bit a cross over. Take this post as a second opinion to what Arcus has posted

Did you check the newest business report from Berkshire Hathaway? If so, what about the total value of investments from Berkshire Hathaway compared to the actual net value of Berkshire Hathaway. The report I have seen spots on that specific numbers and takes the solution that even in the past leverage was used to get the best return on investment. An other point is his option trading which is part of his business.

Some question surely occur if the official story about what is told about his investment is the way it is shown to the public. Never mind and happy to meet a member which has followed and studied the man and his investments in detail. As soon as I have more on that subject, I will let you know. Until then I wish you a very happy Christmas evening.

 

[Somatung]

re: Day trading Nifty & Banknifty Futures

@DSM

Thanks to bring that link and clarify many things. I had information about the started topic from an other source which is not in English nor in any language used regularly in this forum. THANKS My two given links lead to the guys which are responsible for that published information.

 

[Einstein]

re: Day trading Nifty & Banknifty Futures

company has investments of over 140 billion$ in stock, berkshire hathway have been compounding annually at the rate of 10% per annum from last 5 years. which is pretty good for mega cap company. best thing is its still trading below its intrinsic value which is at 200,000$ per share.

and I'won't call that leverage, in leverage you'll have to payback the money while in insurance its your capital reserve which can be obligation for an insurance business. if not its a capital reseve which buffet can use to buy anything(upon shareholder approval).

typo error: correct intrensic value 200,000$ per share not 100,000.

 

[TraderRavi]

re: Day trading Nifty & Banknifty Futures

I guess expiry will be towards 6200 ... IMO

retail have bot lots of puts at/below 6200 , so expiry definitly above 6250, may be around 6290 - 6310.