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Spot The Difference
One of these lines represents the return due to the wisdom of the Oracle of Omaha, the unquestionable "what he says is law" asset manager who adds so much value to everything he does.. and the other is the S&P 500...
It would seem, as Eagle Bay Capital's J.C.Parets notes that "Warren Buffett is a "closet Indexer"" with the correlation to the almost entirely free-to-trade S&P 500 of 0.98, where is the value being added?
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What about the divi? Oh? There isn't any?
After seeing that chart I [Charles] MUNGER'd in my pants.
That's known as pinching a Charlie
Buffett is the biggesat fucking hypocrite alive.
The trolls are out at force today, first tepper yesterday and today we get our dose of senile buffet, and now motherfuckin fink....cmon, lets get hyena face Carl I CAN Icahn also. America isnt run by the bunch of yardapes known as congress...they are run by these over-entitled selfish greedy ass-holes who call the shots...Congress just takes order from these fuckers. The only reason why we think these assclowns who go on CNBShit are bigshots is because they come on two to three times a week like they know what the fuck is going on! Well one thing they dont know is that sometime in the near future, there will be a mob of disgruntled people outside their mansions and trust me they want more than the money these bastards have siphoned from everyone else.
Man, I gotta go take a Buffett...BRB....
Let's give Buffet some credit. Only a fool would discredit his investing track record. This chart only goes back a couple of years. Let's see the chart going back from 1970.
wipe the Buffet off your Munger.
Warren Buffett is a hypocrite ... I wish he would sit down and STFU
But he's such a nice guy and he likes his secretary and he eats ice cream. You know, like real people.
Haha yes, he's a people person. Just like when Obama walks down the street with 30 bodyguards and orders a sandwich at a shop like a normal person. LOL
"...where is the value being added?" In Becky Quick's ....
She didn't get that last name by chance.
To be fair, Nixon should get credit for the stock market bull, not Buffet. After all, he had the cajones to jetisson the barbaic relic. And look how mauch better off we all are! <sarc>
My pants.
He makes his real money when he turns into the "Shylock of Omaha" with the vig he is allowed to receive when loaning money to the Goldman's of the world.
Becky got Warren's "(Quarter) Pound of Flesh."
But he's home-spun, like a goofy Uncle you see at Thanksgiving. And doesn't he play the banjo? Winning!
@Tim Knight
It's a ukelele. He doesn't have the talent to play a banjo.
The value add is the total elimination of risk.
Couple of good days, there.
Eagle Bay must be looking for shor term customers ...
Since 1992: S&P and DOW both approx. 490%. Berkshire? ONLY 2100%. 5:1 = closet indexer!
Don't let the facts get in the way of a good story.
Levered FIRE returns. And his reinsurance biz got an indirect bailout like everyone else in 2008. He's as crony as any of them, and the aw shucks grampa act is revolting.
But last 5 years? A different story - S&P and DOW + approx 70%. Brk.A? slightly over 40%.
You pays your money, chooses your time, and takes your chances - a/k/a LIFE!
Historic performance is no indicator of future performance. Back in 92 and gonig forward etc. he was getting sweetheart deals to bail out the likes of AIG, some of the other big banks, and proffited handsomely, with total insider info.
To think that buffy is all that and a bag of chips as an investors, defies the facts. :)
if he was so awsome why is he tracking the SP500 so closely now? not as awesome as in the past?
Crony Phoney
The Value is in supporting the Big Fraud.
He is just another one of the...
http://www.simondrake.com/the-bankers-who-sold-the-world/
Buffet took 500 billion in banker ENTITLEMENTS. We could have been rid of ALL these assholes if we just would have let the whle thing collapse in 08
Buffett - the guy who wouldn't lend his daughter $40,000 to fix her kitchen up....
he told her to go to the bank and borrow it like everyone else does.
When you get big enough you are the market.If you want to learn how to make money don't look at the last 2 years. Look at the first 20 when he was turning $10,000 into $10,000,000.
". Berkshire Hathaway averaged an annual growth in book value of 19.7% to its shareholders for the last 48 years (compared to 9.4% from S&P 500 with dividends included for the same period),"
quote Wikipedia
Sure he had a successful gambling run. But you can't evaluate a gambler just based on his most succesful run.
When Buffett lost he got bailed out by crony gov, the equivalent of a gambler who when losing simply cheats.
Speaking of indexing, I have seen Buffet quoted more or less as follows:
How do you make money in the stock market?
Learn to buy value, study stocks until you know which ones are good and buy them when they are selling below intrinsic value.
What if you don't want to do all that work?
Index everything. Buy index funds.
kind of impressive. statistically there is a point where the amount of money invested, the distribution of the money, and diversification of the portfolio would or should match the the s&p 500 performance. a money manager would have to take an extreme position to really beat the market and no risk management model would allow it.
that is why it is always funny to read about how badly the average asset manager does compared to the indexes. they should be able to match the performance by accident.