Warren Buffett: Why hedge funds fail

But we as traders do the same thing, we speculate! Hedge funds are of course just doing it bigger.

You just answered your own question. Our actions do not affect the market, theirs can due to extreme leveraging. Also cornering markets, you must have heard about the drug scandal, how much did the price go up of the patented drug?
 
you need to read 'More Money than God' by Sebastian Mallaby. It demonstrates the benign effect of hedge funds in the economy.
 
you must have heard about the drug scandal, how much did the price go up of the patented drug?
You realize that's a good thing right? Capitalism works over the long haul, through bubbles and busts, despite all its inefficiencies. If your observation was correct then the myriad of price controls in Venezuela should have catapulted the country into an era of fantastic wealth over the last 10 years. Instead, they're bankrupt.
 
Back
Top