After decades of building Berkshire Hathaway, billionaire Warren Buffett has stepped down after making many of his investors filthy rich.
As noted by CNBC, "Berkshire 'has a better chance I think of being here 100 years from now than any company I can think of.' Buffett, who is being succeeded by Greg Abel, will stay on as chair of the conglomerate."
While the market isn’t so sure who will make investing decisions for Berkshire Hathaway, here are some key ways to spot opportunity like Buffett has.
Top Ways to Trade Like Billionaire Warren Buffett
When you listen to Warren Buffett speak, you can always take away a few words of wisdom.
In fact, if most of us had the opportunity to have listened to him between 1964 and 2025, as his Berkshire Hathaway returned more than 5.5 million percent, cumulatively, most of us wouldn’t be worrying about money today.
If you listen to the billionaire often enough - as we do - the message is always a simple one.
You just need to buy and hold sizable, growing companies with consistently strong business models that are easy to understand.
What we want to see is how the market is forming on intraday charts as they approach a system entry. These patterns have been discussed at great length. Much has been written about 1-2-3 or A-B-C patterns, and they are a good place to start. For those of you who are unfamiliar, let’s discuss a potential buy signal. A 1-2-3 and A-B-C (I will use these two terms interchangeably) is formed when the market has made a low of some degree, swung up in the next few bars to make a high, then fallen back down to a low that is higher than the previous low. These points (low-high-low) can be labeled as 1, 2 and 3 respectively. Once the market takes out the 2 point, a buy signal is indicated.
Some people only consider a 1-2-3 pattern to be in effect when the 1 point is the lowest low on the chart. For our purposes, we will consider any combination of swings that form in the 1-2-3 pattern to be potential signals. It is even possible for the 3 point of a 1-2-3 to become the new 1 point in a higher 1-2-3. In a strongly trending market, there can be numerous 1-2-3’s climbing up right on top of each other.
There are certainly some people who base their entire trading off of nothing other than these 1-2-3 patterns. Because of the basic nature of market behavior, it is virtually impossible for a market to go up very far without creating some type of 1-2-3 pattern. Most down moves are also initiated with a 1-2-3, and often contain several 1-2-3 sells within the down move. In short, it is a basic indication of how markets move. If a market is making higher swing highs and higher swing lows, it is going up. All of the linear regressions, least slope oscillators, neural networks with fuzzy logic, and astrological information can’t give you any more useful knowledge than that! This trading stuff doesn’t have to be that complicated!
There is a War Going On! And there’s not much else which can affect stock prices until it’s over, or at least it’s announced that it’s actually over.
This coming Friday is a Market Holiday - Good Friday. It’s also the day the Bureau of Labor Statistics will release their monthly "Jobs" report. Officially known as the Non-Farm Payroll (NFP) Report.
The fact that the NFP is being released on a Holiday would normally really upset me, along with many other Traders, as this Report is one of the biggest Datasets that the Federal Reserve uses to help them determine where they set Short-Term Interest Rates.
But the War in the Middle East will have far more bearing on Interest Rates than the US Employment. Mind you, the War in the Middle East will also have a lot of bearing on the Economy, and hence on the Job Market. But no matter, this Fridays NFP Report is a non-tradable event.
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