Buffett 20% annualized gains over 45 years

You are completely missing the point. I have managed a hedge fund and I know full well what idle cash can do to a performance. If you're 80% invested, for example, and the market is heading higher that 20% sitting around doing nothing will wreak havoc on your performance numbers. Buffett doesn't have that problem because his idle cash isn't counted against performance.

And I never said it was fucking easy. And yes, I agree with you completely about management fees but there are other factors as well.

Quote from running_bare:

^^ The ROI calculation to an investor is the same fucking thing whether it's for 1 share of BRK, mutual fund, painting or rare comic book.

If it were that easy how come more money managers are not "doing a Buffett" and buying & running insurance or cashflow rich cos?
Because most funds are run for the benefit of the money managers primarily in the form of management fees
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Quote from l2tradr:

That's nothing. With the new advances in forex trading and many trading robots generating 20% per week (and a few discretionary traders right here on ET), it's a matter of time before his wannabe "track record" will be put to shame.
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it is an ET classic

20% per annum is very amateurish for the creme de la creme that usually posts on this site.

LMAO
 
Quote from paretrader:

He would fail starting from today. no question
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It's so nice to see when people put benevolent multibillionaires in their place. Feel better?

As an aside, I find it interesting that, at the time of this writing, 5 of your 12 posts thus far include a link of an interview conducted by Marketsurfer. I wonder what conclusions one can draw...
 
Warren Buffet's ROI isn't really any better than a S&P500 index fund over the same interval.

The difference is that Warren Buffet leveraged his way to high ROE in the greatest long term bull market known to the world (the USA). He obtained this leverage by investing the surplus premiums of an insurance company into the markets.
 
Exactly! When he found something he wanted to buy he took cash from Berkshire and bought the stock. If there was no stock to buy the surplus cash sat on Berkshire's balance sheet. Buffett is a good investor but he is an even better businessman. He will go down as one of the best investors of all time but he should go down as one of the best businessmen of all time.

Quote from pitz:

Warren Buffet's ROI isn't really any better than a S&P500 index fund over the same interval.

The difference is that Warren Buffet leveraged his way to high ROE in the greatest long term bull market known to the world (the USA). He obtained this leverage by investing the surplus premiums of an insurance company into the markets.
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These folks Beat everyone.

1.0-1.9% daily return!! Symbol EMGF

Or 6.0-9.0% dividends paid out weekly symbol WBMF

http://www.geniusfunds.com/En/funds.html

WOW!!!!!! !!!!!

Fund WBMF (No-sale period of 180 days)
Investment $ 100000.00
Term (Days) 360
Share class Premium shares
Cash income paid $ 1446508.38
Reinvested (Compounded) $ 217216.83 through 100% reinvestment rate
Total income $ 1663725.21


alexageniusfunds.jpg
 
Quote from clacy:
Man, the people here on ET crack me up. There is ALWAYS a conspiracy, I guess.
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Fascinating, isn't it? These people are just totally clueless. They think life is a hip-hop video where dissing someone gives you cred. These people are all under 25 years of age, I guarantee you. Case in point below.
Quote from l2tradr:
That's nothing... it's a matter of time before [Buffett's] wannabe "track record" will be put to shame.
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Yep, that's an accurate characterization of Warren Buffett. A 'wannabe'.

Don't you wish you could short these blabbermouth kids? It would be free money.

Just found another one
Quote from pitz:
Warren Buffet's ROI isn't really any better than a S&P500 index fund over the same interval.
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It's like they're purposely trying to make the stupidest comment possible in order to attract attention.
 
Quote from turkeyneck:

NEW YORK (MarketWatch) -- Many investors can only look on with envy when Warren Buffett says his shareholders have seen 20% annualized gains over the past 45 years -- even the best mutual funds pale by comparison.

http://www.marketwatch.com/story/buffett-and-berkshire-outperform-all-mutual-funds-2010-03-05
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The risk profile of his company is very similar to any hedge fund that has no real understanding and control of risk.

From time to time you see 50% plus swing in its stock price. And people said this guy is "a long term investor"!

If you are investing for retirement, isn't it better to actively manage your portfolio to reduce the risk exposure so that whenever you need the funds, it is there at reasonable level, not just 50% or less?!

Thus normal people, who need their money for retirement, should never "invest" like Mr. B.
 
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