Follow savvy investors - sure win strategy??

I believe some of us like to look out for names of some popular savvy investors on Annual Reports for "hints" if that particular stock is endorsed by successful investors, yes, I do the same too. The fact that they are so successful provide some comfort to us that their stock selection should be better as we believe they have better insights.


There are few investors that I follow did really well basing on the share price performance of those companies they owned. But I did not simply invest in these companies before careful analysis for the following reasons:-


1. They may have entered at a very attractive price, hence, already sitting at handsome unrealised gain when I saw their name on Annual Reports, I will try to do some analysis whether there is anymore margin of safety. Yes, it still warrants careful study before jumping in. 
2.  Is it that they see something that we don't? If I still can't see, I would rather miss than feel sorry later.
3.  They have much much larger capital, hence, that particular stock may just be a tiny fraction of their capital for whatever reasons (diversification or strategic capital allocation for growth stock / dividend stock / aggressive risk taking). I need to study if that stock also fit into my own strategy, otherwise, I may end up with a dividend stock when I need to look for more growth or vice versa. Worst, if that is their high risk bet for high return and they could afford to lose all in this particular stock but I can't afford that.
4. They may have bought it years ago with extremely low entry price, for all you know, they could be in the midst of exiting when we enter.
5. Everyone makes  mistake at times, so are they. Again, when they make mistake, it probably only a ripple to them but for me, it may be a tsunami. Furthermore, they can wait much longer for it to recover but I don't like to get stuck for more than 2 years!!
6. Theirs dividend income is large enough to provide fresh capital for additional investment. I do not have this luxury now, but that's my ultimate goal.


Having said all that, it is still a good source for stock picking as there may still be upside even after their names appear on Annual Reports. Better still if we are in much earlier and ride on the momentum after strong followings from their fans.
The key is - do our homework and think objectively!!