why can't hedge fund managers or even their army of PhD quants beat his long term performance?
>tfw complex algorithm trading gets BTFO by Buffet's pen and paper calculations
Because he's patient and not greedy
My favourite part about it is everyone else shits on his decision making (not buying into the dotcom bubble for example) even knowing that he is right 99% of the time
Because hedge funds are not geared towards beating the market but have a very broad set of specific goals that are often set by their investors, e.g. "I want to make sure that this investment does not fall in value over this period", or "I want to make sure if this thing goes up in value, that this other thing does not go down in value, find a way to make these things not interfere with each other", and all sorts of other much more specific and complex stuff. Those goals are often not achievable by using buy and hold.
Suppose there primary goal is actually being able to hedge.
OP, most people can't beat warren because they just as smart as him. The guy lives and breathes numbers (has a photographic memory) sine the age of 0. I think he read his whole public library by age 10, and was one of those kids that started several local business selling literally anything at young ages and succeeded. AND was mentored by ben graham through school and his first job. And Ben Graham was also equally smart some say - he averaged 17% annual returns I think
Average annual return of 22 % keep in mind that berkshire hathaway is a 309 billion dollar company with 91.9 billion assets under management. Since he's managing such a massive portfolio he has to at a very minimum make investments worth at least 100 million otherwise it isn't worth his time to research that company. He also can't invest in small to mis cap stocks because of liquidity concerns. He has stated that if he was managing a much smaller portfolio that he could do 50% a year which is believable since he has achieved returns over 50% a year earlier in his career when berkahire hathaway and his aum were much smaller.
At this point, some of it has to do with his name.
No matter what he buys right now, the price is going to shoot up 10-20% just from people wanting to ride his coat tails.
As far as his past achievements, it's the same value investing that many people do, only with a lot more money.
Unlike all of you, Buffet is an investor. While all of you are busy speculating on short term market fluctuations, Buffet provides real businesses with real capital investment that they then use to expand and produce actual products.
>why can't hedge fund managers or even their army of PhD quants beat his long term performance?
meme. there are at least a million traders who beat buffet's return i mean the guy has barely beat the index. ive seen confirmed track records of traders over 20 year periods withing 100-350% annual returns every year
>barely beat the index
hes more than doubled the index every year on average. are you retarded?
post a citation or link to your claim, and until you do im calling bullshit.
>inb4 those traders have 100k aum
to answer your question, OP, its because he doesnt care about the short term at all. hes investing in companies as if he won't die and as if brk.a will be around forever. he's looking 20-30 years into the future while others are worried about this year. he didn't start to manage or have any real money until he was around 50, then when he did start to get fat stacks he allocated them appropriately and watched his empire grow.
>rome wasn't built in a day
just one example 2001-2009 trading nasdaq
average trade 15 days
starting capital 20k
end capital 13 million
worst year 130% return
best year 260% return
no comissions included. cfds you have no comissions.
>Sell normies information about stock he bought.
>Normies think "If Buffet thinks this is a good deal, then it's good enough for me"
>Price jumps 20% over the next year
>Sell that shit.
Divide your capital into 20 equal parts. Go to random stock generator. Flip a coin. Heads- calls. Tails Puts. Stay 100% invested at all times . Sell only after they triple. Its a 50/50 shot with 3x return. You cannot lose 20 times in a row.
>mfw all the quants I know work 14 hr days and make less than me.
if you have around 190k to buy one share, go for it. he also doesnt pay dividends so whenever you feel like cashing out and enjoying that growth youll have to sell that one share. also the fact that hell be dead by the time youre ready to retire doesnt help you at all.
leverage per trade was 4-15. 15-20 were max and shortest ones with 2-3% stop losses
>meme. there are at least a million traders who beat buffet's return i mean the guy has barely beat the index. ive seen confirmed track records of traders over 20 year periods withing 100-350% annual returns every year
That's what they say.
some of them do, or at least achieve similar gains, albeit with lower amounts of capital
rentech for example
there are lots of ways to beat the market - value investing is one, HFT, trend following, stat arb etc.. are others... some approaches have a larger capacity/can be scaled more than others
The guy is old He will die soon All his money can't even buy immortality What a waste of time to be a live What a failure he is He must be deeply sad What a man How sad must it be knowing that he's the last generation of rich people that can't buy immortality.
>posts the ugly chick from star trek in the most bullshit post in the thread
people like you is why I hate
>BTFO by Buffet's pen and paper calculations
You mean a lifetime of insider trading? What a success story..
The latter, If you don't know shit abut the market then announcing that you 'live in the Warren' will get a bunch of self entitled dicks to lecture you on this shit at every party you go to. Perfect learning opportunity.
It'll be like here, except you don't get invited to parties do you?
Warren Buffett is a superstar. There's no other way to describe him. The amount of money he has earned for investors and his investment style is just extraordinary. There will likely never be another person like him.
>If you invested 10k in Warren Buffett's partnership, that amount would be $500 million today.
Just do both. I'm 100% equities and I hold BRK.B and a low expense S&P 500 mutual fund.