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
Well, the Buffett effect is short lived and not 100% predictable. Also, it’s not easy to unload $100 million in most stocks. When you’re trying to sell $100 million in stock, you flood the market, which causes the price to go down. This would pretty much eliminate the gains entirely.
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