Quote from praetorian2:
Surf, Gann-
Is it really that annoying? I have heard this from quite a few hedgies, and ex-hedgies. It must be true.
Why don't you just take the approach that Buffett took in his fund?
You get 1 yearly statement. There's 1 day a year when you can add or take out funds. On that one day each year, you can question him on anything under the sun til you collapse from exhaustion. Besides that one day, if you mention the fund to him, or even worse, come to see him, he immediately hands you a check for your money and sends you home.
He just didn't want to deal with all the crap. That's probably why he did so well. He had much more time to think and spent less time on meaningless back office and marginal type issues.
I think that one of the main reasons that my results suffered this year was that I spent increasingly large amounts of my free time either working on the fund, researching the fund, or talking to people about the fund. I also spent quite a bit of time on taxes and tax planning to minimize them. This was time that a year ago I would have spent reading reports, newspapers or stock charts.
This is one of my main concerns going forward.
Quote from praetorian2:
Surf, Gann-
Is it really that annoying? I have heard this from quite a few hedgies, and ex-hedgies. It must be true.
Why don't you just take the approach that Buffett took in his fund?
You get 1 yearly statement. There's 1 day a year when you can add or take out funds. On that one day each year, you can question him on anything under the sun til you collapse from exhaustion. Besides that one day, if you mention the fund to him, or even worse, come to see him, he immediately hands you a check for your money and sends you home.
He just didn't want to deal with all the crap. That's probably why he did so well. He had much more time to think and spent less time on meaningless back office and marginal type issues.
I think that one of the main reasons that my results suffered this year was that I spent increasingly large amounts of my free time either working on the fund, researching the fund, or talking to people about the fund. I also spent quite a bit of time on taxes and tax planning to minimize them. This was time that a year ago I would have spent reading reports, newspapers or stock charts.
This is one of my main concerns going forward.
Quote from WDGann:
Let's say you have a friend who's in the oil drilling industry. He gives you an opportunity to invest in it. You feel good about it and consider it.
Now....
How would you approach it? Wouldn't you want to make sure you're doing the right thing. Wouldn't you be skeptical and do massive research? I think it's very similar.
Quote from praetorian2:
Easyguru-
I read that same book. I looked into a few of those services a while back. Maybe you can correct me, but it seemed as though they'd only steer money your way if you gave them a huge percentage of the fees from that money. Many of the services wanted 30%+. It is almost better to just ignore those it seems.
Surf, I'm going the route where I have 35 non-accredited investors. Most of those are going to be relatives actually. I don't intend to take on investors who are not accredited who I don't know, or who don't come from a very close friend.
I really want to limit any legal risk. I hate lawyers.
I hate to deviate, but this may make an interesting thread also for fund managers out there:
I am interested in how you think your style or attitude to trading changed once you took on other people's money as opposed to just your own. Do you think you performed better or worse, and why? Please feel free to add any other info that you think would be helpful for someone like me who's now making the jump so that I can avoid any pitfalls.
Quote from marketsurfer:
when you are buffets size you can do anything and people will follow.
Quote from Vishnu:
When Buffett started his fund in the 50s he put $100 in it and worked out of his bedroom. The top size of his fund in year 1 was $100K but he still opened for business only one day of the year. The key to his success was never his money (like most people, he started with none) but his personality.
Quote from praetorian2:
Easyguru-
I read that same book. I looked into a few of those services a while back. Maybe you can correct me, but it seemed as though they'd only steer money your way if you gave them a huge percentage of the fees from that money. Many of the services wanted 30%+. It is almost better to just ignore those it seems.
There are people who still do it . Go through this site and the funds rules and regulations. It is exact copy of BuffetQuote from marketsurfer:
1950's were very very different from today. he would not have suceeded, to his level, starting from scratch in 2003 with those parameters.
surf
Quote from Vishnu:
When Buffett started his fund in the 50s he put $100 in it and worked out of his bedroom. The top size of his fund in year 1 was $100K but he still opened for business only one day of the year. The key to his success was never his money (like most people, he started with none) but his personality.