May 16, 2011

The Trading Game is my latest research paper. It is for the few that have followed this thread and were wondering where it all led to.

It is a continuation of the preceding papers. It maintains and re-emphasizes what was presented and leads to part one of my conclusions. The more I researched the subject, the more the equations I used expressed simple trading methods which could all be resumed in: trade mostly like Mr. Buffett does.

All the equations represent in mathematical form what Mr. Buffett has been doing for years with a lot of success. Buy what you think will be there in 20 years' time. Take your initial position and accumulate more shares as profits increases. As a matter of fact, buy more shares could be in anything you think will appreciate in time; any asset with a future higher value will do.