Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Buffett Says Money Spent on Plumbers Better Than on Hedge Funds
07-05-2017, 12:18 PM,
Post: #1
Buffett Says Money Spent on Plumbers Better Than on Hedge Funds
Buffett Says Money Spent on Plumbers Better Than on Hedge Funds

by Noah Buhayar  and Jordyn Holman
May 7, 2017, 3:05 AM GMT+8

Warren Buffett isn’t done criticizing hedge-fund managers for wasting clients’ money.

At the annual meeting of his Berkshire Hathaway Inc. he again pressed the argument that, in aggregate, investment professionals aren’t worth their fees -- and that people would be better off sticking their money in a low-cost index fund. He also challenged how hedge fund managers are paid.

"If you go to a dentist, if you hire a plumber, in all the professions, there is value added by the professionals as a group compared to doing it yourself or just randomly picking laymen," Buffett, 86, said. "In the investment world it isn’t true. The active group, the people that are professionals in aggregate, are not, cannot, do better than the aggregate of the people who just sit tight."

Vice Chairman Charles Munger, 93, said "it’s even worse than that" because some hedge fund managers with a long career in the industry -- known for charging 2 percent management fees and taking 20 percent of profits -- do well, attract money and then lose it.

More details in https://www.bloomberg.com/news/articles/...edge-funds
Specuvestor: Asset - Business - Structure.

http://www.valuebuddies.com
Website Find Reply
07-05-2017, 03:08 PM,
Post: #2
RE: Buffett Says Money Spent on Plumbers Better Than on Hedge Funds
Just like to add I once said ...

"Reminder for myself : Putting money in Unit Trust do not make me an investor.
It only convince myself that I am incapable to be one."


Cory

Just my Diary
corylogics.blogspot.com/



Find Reply
07-05-2017, 05:05 PM,
Post: #3
RE: Buffett Says Money Spent on Plumbers Better Than on Hedge Funds
hedge funds serves HNW/UHNW rich people anyway, they have money to burn, let them burn! why bother? Tongue
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 

Find Reply
07-05-2017, 06:59 PM,
Post: #4
RE: Buffett Says Money Spent on Plumbers Better Than on Hedge Funds
The best fund managers are those who returned the investors
money and managed just their own money. Eg Buffett, Greenblatt, Burry & Soros...

"When you take money from others......."
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster

Find Reply
07-05-2017, 09:22 PM,
Post: #5
RE: Buffett Says Money Spent on Plumbers Better Than on Hedge Funds
Last year's AGM was better imho.........

Find Reply
07-05-2017, 09:45 PM,
Post: #6
RE: Buffett Says Money Spent on Plumbers Better Than on Hedge Funds
(07-05-2017, 06:59 PM)opmi Wrote: The best fund managers are those who returned the investors
money and managed just their own money. Eg Buffett, Greenblatt, Burry & Soros...

"When you take money from others......."

IMHO these folks were "hedge fund" managers one way or another

It is actually puzzling why Buffet used the term "hedge fund manager" when actually he is comparing those who buy and hold vs those who trades frequently, if you read the past few years' context properly. The classic hedge fund managers are actually absolute return managers but many nowadays are actually beta managers in disguise, cause media only likes to report sensational high return numbers, same way how ponzi do their marketing Smile
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Find Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)
Valuebuddies.com | Return to Top | | Lite (Archive) Mode | RSS Syndication | CONTACT US: nas......@valuebuddies.com |