Opinion - can u be a copy cat to beat the original

By Matt Phillips
Can you beat Warren Buffett at his own game?

The Journal’s Brett Arends writes that despite the recent equities rally, some of Buffett’s favorite issues look pretty affordable at the moment:

Mr. Buffett liked oil giant ConocoPhillips (COP) enough to invest $7 billion in the stock through the end of last year, at an average price of $82.55, according to the Berkshire Hathaway annual report. Anyone buying today can get it for about $41.

Mr. Buffett has conceded an “unforced error” in buying this oil stock when oil prices were booming. But that doesn’t mean he has given up on it. In his last comments on the subject a few months ago, he reiterated his belief that demand for energy would remain strong. At current prices ConocoPhillips is about 13 times this year’s forecast earnings, but analysts predict that will drop to a cheap 7 times in 2010. That’s because they believe oil and gas prices will rebound.

He bought Johnson & Johnson at about $62 a share: It’s now about $55, or 12 times likely earnings, yielding 3.5%. He had also invested about $4.3 billion in food company Kraft, at around $33 a share. It’s now around $25, 13 times likely earnings and boosting a hefty 4.7% yield. He had also invested $2.3 billion in US Bancorp at an average price of about $31. Today’s it’s $17.

(Mr. Buffett has added to his positions in both Johnson & Johnson and U.S. Bancorp since.)

Bilibala's comments
In theory, an individual can copy Buffett or copy the best mutual fund managers to build up a portfolio. According to one study, if an individual follow the "what would Buffett do?" approach to purchase and sold exactly what Buffett did in the past 40 years. The rate of return will still be close to 20%, a way higher than the return of the S&P 500 or the average mutual fund.

On the other hand, everyone should do their own study to make sure you are confident enough to hold those stocks in long run. If you are too scare or too greedy in the wrong moment, become a copy cat will make you loss more than earn.