He buys $100 million worth of X stock. People follow and buy $100 million worth of the same X stock, stock is now wanted and goes up in price, Buffett sells his shares and profits.
Why is this not happening?
In: Economics
As others pointed out, the logistics for major acquisitions and dispositions are not so simple or quick.
Second, it isn’t Buffett’s strategy. His reputation and strategy is built around long term value plays. If he started pumping and dumping, not only is this a fairly complete repudiation of his own strategy, it would be quickly detected and his reputation would plummet. What you suggest is not at all what he has built his entire fortune and reputation on – so it would be foolishly short term – the anti-thesis of basically his life’s work.
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