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@@_d0ser Yep. He also made most of his wealth in insurance rather than investing. So many people, for whatever reason, are not aware that Berkshire owns GEICO (and numerous other companies).
There was a book written titled "Where are the customers Yachts? By Fred Schwed written back in the 40s ...and it makes plain why most these Hedge fund guys are just making money off slicing up their clients money ...not by being investment geniuses !
Be Positive & Life Comes Around ! How's the Situation in USA ? Things are going from Bad to Worse in Mumbai , India . That Double Mutation Strain discovered last Year has wrecked havoc since March 2021 ! The Maharashtra State Govt is thinking of Complete Lockdown(we are already in 15 day partial lockdown ) .Other States like Uttar Pradesh & Delhi have Sunday lockdown & weekend lockdown respectively since this yesterday. That Double Mutation Strain spreads via Air (not only droplets) & evades /escapes the immune system .Even people who got 2 shots of Vaccine became sick .
Buffet may be the best value investor of all time, but Munger, who was a former attorney, was the guy who executed the "art of the deal" to get the sweet heart benefits. This ensured Buffet couldn't lose.
Manufacturing business in Hathaway company first Munger give advice to buy then Warren Buffett once try it but he fell in love it .so now 5 billlion profit earned from manufacturing industry business which is larger than insurance
@@aaryanmehta4609 Kraft Heinz merger and Bank of America bailout are a prime example of private deals rather than just investing. Buffet himself said Munger convinced him it’s better to buy a great company at a good price than buy cheap company for a great price.
@@aaryanmehta4609 Well. maybe Warren would do the same without Munger... but I choose to believe that we each need support of at least one respected peer in ways more than cerebral.
I've been doing this for 23 years now and it worked for me. The only difference for me was I held some bonds for a smoother ride. I'm too much of a chicken to hold 100% stocks, so I'm a 60/40 guy for life. 60% in the Vanguard 500 Index and 40% in the Vanguard Total Bond Index. Or just put 100% in the Vanguard Balanced Index Fund. I'm not unhappy with the results. I would have done even better if I did put 100% in the 500 Index like Warren says, but I think I would have lost my mind in 08 and 09.
Great name for the channel. I was fortunate enough to have a professor of finance while pursuing my accounting degree who said this very thing that’s being talked about whenever a student asked what they should invest in. Everyone wants the “secret stock” or “best money manager” to invest in. Your best bet is an index fund that follows the S&P that has minimal maintenance fees. I know that sounds boring, but if you want the best answer, that is it. He was the reason I chose to do a double major in finance to go along with my accounting degree (I had no intention of pursuing a double major before taking his class). He also convinced me to take on an econ minor, which I did. Very grateful to have been influenced and taught by him. It makes it much easier to see thru the BS when you have a solid foundation.
Be Positive & Life Comes Around ! How's the Situation in USA ? Things are going from Bad to Worse in Mumbai , India . That Double Mutation Strain discovered last Year has wrecked havoc since March 2021 ! The Maharashtra State Govt is thinking of Complete Lockdown(we are already in 15 day partial lockdown ) .Other States like Uttar Pradesh & Delhi have Sunday lockdown & weekend lockdown respectively since this yesterday. That Double Mutation Strain spreads via Air (not only droplets) & evades /escapes the immune system .Even people who got 2 shots of Vaccine became sick .
Most people mention Benjamin Graham's Intelligent Investor as Buffet's foundation in investing. But most investors forget when he met Munger, his investing greatly departed from Grahams to implement Mungers.
15,000 views, trust me, people want to feel special, and hedge fund managers know how to make wealthy people feel special and important, and they choose them over VOO, simple as that. VOO is not sexy, it doesn't tell you how smart you are, and how rich you are, it doesn't care about you, but it makes money for you.
Alfred Horg buffet explained it in the video. Rich people want to feel like they have access to top talent in industry to make them more money than anyone else. So the managers say yes, you have found the elusive top talent that will multiply your money better than any other vehicle.
The problem lies in the misconception that the purpose of hedge funds is to make as much money as possible. The people who invest using hedge funds do not need to make any more money... They want to protect it.
Hedge funds are enormously profitable… for the hedge fund operators. Imagine raking in 2% of a wealthy client’s money without risking a dime of your own, whether your hedge fund goes up or down. Now THAT is a guaranteed return (for the operator, not the investor). Not to mention 20% if the fund actually makes money.
The book laughing at wall street touches on this. Mutual funds and 401ks just dont do better than the s&p, but they charge you 2% because you believe your funds are managed by an expert. Its a joke.
El Jay Vanguard has an S&P 500 index mutual fund that I use. Low management fees, and it serves a different goal than the ETFs and individual stocks that I own. It’s pretty much matched the S&P 500 and I don’t want to get robbed by the IRS when I retire in 40+ years, so it works out well for me.
vicco90 If you’re American (I don’t know if other countries have something similar), you have the option of going for a Roth IRA. Basically, you get taxed when you put money in, but not when you take it out in retirement. You’ll pay capital gains taxes on S&P 500 indexes when you sell them off to retire. I’m not touching my Roth IRA until I retire, but depending on what I want to do (ie start a business, have a safety net that gets more interest than cash in a savings account, etc.) I can sell them off when I feel like it. I’m young, so your plans might be different depending on how old you are and what your situation is, but that’s my reason for doing each.
What do you mean by 401ks? 401ks are a type of investment account. A 401k can't have performance by itself because it's just a place to hold money. You can invest in index funds in most 401k accounts.
@@johnnycanuck123video , Be Positive & Life Comes Around ! How's the Situation in USA ? Things are going from Bad to Worse in Mumbai , India . That Double Mutation Strain discovered last Year has wrecked havoc since March 2021 ! The Maharashtra State Govt is thinking of Complete Lockdown(we are already in 15 day partial lockdown ) .Other States like Uttar Pradesh & Delhi have Sunday lockdown & weekend lockdown respectively since this yesterday. That Double Mutation Strain spreads via Air (not only droplets) & evades /escapes the immune system .Even people who got 2 shots of Vaccine became sick .
He's learned this from Intelligent investor book and so did I, it's written there how index will mostly perform better than hedge funds. I am proud to say I have beaten the performance of some hedge funds by investing (20% of my portfolio) in USA, Australia and other Asian countries stock index funds.
Tobin K Warren Buffett beats hedge funds, but trash dump worker beats Warren Buffet for eleven years through 2017! howibeatgold.wordpress.com/2017/01/25/trash-dump-worker-invests-better-than-harvard-yale-and-columbia/
A lot of folks harp on about the performance of the S&P as a reflection of the American economy, but what about the world as a whole? Any unifying perspective on future trends of the global economy as a whole that might guide buying international indexes?
It's always more to the story. The real question is if the consultant is going to act in the best interest of their clients and look for growth and suitability, or are they really charging the client just to do nothing at all.
For the average folk trying to retire, index is a great way to go... Warrens method is simple but not easy. Most value investors can't even put up returns like him.
Is there a way to short hedge funds? We can buy S&P Index fund as a hedge and make money from the arbitrage over a longer period, because hedge funds will always lag Index (barring 1-2 year exceptional years).
the terrifying part about this that it is probably true for any theory driven discipline. if you're dealing with 'experts' who aren't doing nuts and bolts level work you're probably better off in your ignorance than with their input.
warren and charlie are absolute legends. the hedge fund industry is an absolute joke. say goodbye to "2&20" and say hello to zero-commission and zero-expense ratio ETF's and mutual funds ..... thank you Mr. Bogle!
These two column. That show the earning different income resources. In the 2008 S&P negative in earning and other investment to different company may be by business or Illinois business such as the future also have the loss
I agree with Warren Buffett, the S&P 500 is a very well balanced index fund, you can either buy a vanguard index fund or a vanguard ETF VOO and buy it with very little management fee .04% basically almost no fees and if you want even better results combine VOO and VGT which is the vanguard information technology ETF and probably the best index fund right now. I own both VOO and VGT and convined with some other stocks like apple, AMD, Costco, Home Depot, Nike, Roku etc. I been getting 10-15% rate of return monthly
Warren Buffett has common sense, however common sense is any thing but common. Greed drives people to take risks. "The greater the risk, the greater the reward" right? This may be true in individual cases, however Warren Buffett has proven that in the aggregate the rules are different. Absolutely no one can argue with his financial success.
Exactly the point - where is the line on the chart for Berkshire performance? If there were one, it would show Berkshire's gain at roughly 130% during the period in question. A bit of an omission there Mr. Buffett. This is a sales presentation by him and a deceptive one.
A point of a hedge fund is to HEDGE against the market in a case of a downturn. The people throwing their money into HEDGE funds, also throw their money into other Index funds and ETFs but choose to leave the nitty gritty hedging process to the experts.
The point of hedge funds is that the SEC allows you to use more complex financial instruments to amplify returns if your clients are all accredited investors. They also perform terribly during recessions. You literally stated the opposite of the truth
there is a lot conflict of interest in the financial markets. What suited me the best was having no middlemen with COI and doing everything by myself, all the analyses, fundamentals, macro,micro, quantitative,qualitative..balancing my own portfolio combining trading and investing...reinvesting profits to get even more. That worked for me. Just me and my beliefs, underlined by my rationale. Why do I, personally, think this stock will go up in the future.
I think that the main reason for this is, a lot of hedge funds use options and other "insurances" to cover their positions, to "hedge" themselves, so when the S&P 500 performs well, they earn well. But when the S&P 500 loses a lot. They lose at lot less like in 2008. Add the fees on top of that, and you have what Warren Buffett is saying.
The reason why many hedge funds are worse than junk is the fact they are run worse than junk. If you go with any so called fund that focuses on day trading, ups and downs, high fees and constantly pushing share issues for no reason other than to sound cool then it will be a mess. Buying and constantly selling shares for no reason is not a good thing and it most certainly is not investing.
Most the Financial Engineering / Quantitative Finance and other Physical Science graduates end up at hedge funds. They make things purposely look so complicated because that is their job! Hedge Funds are there to make simple things look difficult, to justify the performance fees /loads they charge as a percentage of NAV - Net Asset Value. Most of the customers and regulators don't understand mathematics or physics and other sophisticated computational statistical /data science jargon. So, they fall for it!
In all fairness, a value investor like Buffet (whom I respect) challenging other fundamental investors using hedge funds as their investment vehicle in all likelihood leaves out the most valuable investors on the planet: the quants. There are quant funds that have earned 100% per year over a 10-year period and others that have averaged 27% annually since 1974. No fundamental fund managers -- or the S&P index funds -- have even come close. Many quants were so profitable they have gone private, but still continue to create incredible results and billions of dolars for their founders year-in and year-out. See, for example, Renaissance.
My Depression era mother always said you put money into stocks you can afford to lose. It's not a place for college funds, etc. Advice that served me well in 2008.
Gordon Adams what about the 10 years after 2008? You could have ridden the Dow from 6500 to 26000. Dollar cost averaging the S&P500 is fabulous over the long term, when you are nearing retirement start moving over to quality bonds
@@NateB I would. If the stock market crashed and I lost everything forever or it crashed and stayed low for years and years I'd bigger problems than not having money because some serious shit went down. You slowly start to sell and transition into other assets as you get older so you're not forced to sell at a low price. I bet if you dont panic and sell and have a well diversified portfolio you'd make it out of the great depression somewhat okay and then give it a while and youd be better off than before it.
day trading is a job. You derive income from it on a daily basis. there is a cost to it , but it is all deductable. If you spend 3000 to make 300,000 thats a fine cost
I hope to god Buffett and Charlie have distilled their wisdom down to the next generation in their organisation and that this extremely unusual and radical common sense knowledge is passed on.
Isn't this a bit misleading without accounting for risk? Is it possible the hedge fund risk was much lower than the index risk? Shouldn't we be looking at risk to return rather than just return?
Index funds are very good for investors with little insight. I have done it successfully. There are other reasons for investment advisers. Such as: What happens if you get Alzheimer or Dementia? What if you can not financially trust members of your family? You can loose all your investments from actions of a corrupt caretaker. Happened to many.
I invest in ITOT total market index ETF. 3 basis points per year in fees...it's basically free. If you are ok with mutual funds, fidelity offers completely free total market funds now. Why would anyone pay a hedge fund manager??
People always ask me if I feel stocks are equal or more valuable that investment property. More profitable in a sense you may yield higher return. Sure but higher return on what? Your own money... Investment property I yield a return on the banks money... 10% of a 100k is 10k, yes very good.... I like that. Ok 8% of 500k is 40k. I'm just saying try and do both.
Erik johnson 😂 you obviously never rented out property, fees, taxes, mortgage insurance, house insurance, months without renters. Commercial real estate is where any pro invest
@@907living6 Depends what market your in big guy. Commercial real estate in Boston MA where I live. Yes, you have to be a pro. As in a corporation or have an outstanding credit line with a large debt to equity ratio on an LLC because to put 20% down, solicit a tenant and structure a lease takes big big dollars. I'm out here on my own right now. Thanks for the support chuckles.
The industries oversea has loss as well as chemical industries. As home future bad no income could be can not sale and export to oversea or by bad weather that cause farms damaging.
though Robinhood ain't exactly free... majority of retail traders won't worry about being front run so it's a good model... been waiting for something like this to hit Australia and there is now one called Stake... Robinhood article here (startupsventurecapital.com/robinhoods-exceptionally-clever-business-model-arbitraging-privacy-776663d4d855)
Rad Dalio is/was a hedge manager I think he is now retiring. BUt he has outperfom the market and the S&P500. His HF doesn't accept clients since 2004. there are plenty of very succesfull HF managers as well. But Buffet point is good, many charge exhuberant amounts of commissions
I've been studying the hedge fund industry for a time now, and there are only a few(like 1%) hedge funds that are really legit. Renaissance Technologies, Baupost Group, Abrams Capital, Blue Ridge, DE Shaw, etc. Are some examples of legit examples, but they are a minority.
@Daniel La Zarr the ones I mentioned have a track record that goes back many years. It is impossible to be lucky for 15 years in a row. Tge average hedge fund may not beat the S&P, but there's a minority that does. Look at Reinassance(specially their Medallion fund).
After inflation and after taxes what is left of 21.9 %? thats 10% alone for inflation. So 15% tax(prob 20%) of the 21.9% cummulative rise, thats 18% maybe, then there is inflation thats 10% then you got 8% left. But thats IF you bought at the worst point in recent history 2008. People tend to forget inflation whis is 1.1-1,5% that gets taken from youre money each year. AND taxes. Taxes and inflation can eat a LOT through the years.
"There´s been far, far, far more money made by people in Wall Street through salesmanship abilities than through investment abilities." W. Buffett
when there is a gold rush, sell shovels.
I was stung once! My mama didn't raise a fool
He is so good at painting a big picture with only a few words.
Marketing the myth of trading just keeps on giving
@@andersbodin1551 i was gonna say that:)
I wanna start my own hedge fund, "the fund that outplays the funds" It will consist 100% of the S&P500 index
He said the cumulative had a 40 something point lead
Can i send you money?
You mean owning every business in America. Good Luck buddy
@ger du And it's the next bubble!
ger du Yeah but you don’t tell that to you clients, and take your cut
Warren is loved, not just because he is rich but for his transparency.
💯
He does give reasonably good advice but he is translucent
He's not transparent. Quite the opposite in fact.
@@_d0ser Yep. He also made most of his wealth in insurance rather than investing. So many people, for whatever reason, are not aware that Berkshire owns GEICO (and numerous other companies).
@@cameronmcgehee pretty sure almost everyone knows Berkshire made their money from Geico. It's in the 101 introductory class to Berk.Hathaway.
Those 40 dislikes are from Hedgefund managers
Lol
It's 55 fund managers now
76
Farouq Muhammad Aliyu 79
Lol
That's why is love Jack bogle, founder of vanguard, a saint in the eyes of many.
There was a book written titled "Where are the customers Yachts? By Fred Schwed written back in the 40s ...and it makes plain why most these Hedge fund guys are just making money off slicing up their clients money ...not by being investment geniuses !
borderlord correct.. brokers are SALESPEOPLE not financial planners. big distinction.
Be Positive & Life Comes Around ! How's the Situation in USA ? Things are going from Bad to Worse in Mumbai , India . That Double Mutation Strain discovered last Year has wrecked havoc since March 2021 ! The Maharashtra State Govt is thinking of Complete Lockdown(we are already in 15 day partial lockdown ) .Other States like Uttar Pradesh & Delhi have Sunday lockdown & weekend lockdown respectively since this yesterday.
That Double Mutation Strain spreads via Air (not only droplets) & evades /escapes the immune system .Even people who got 2 shots of Vaccine became sick .
@@kedarbarve5884 Nobody gives shlt about 3rd worId dump
"a terrible result for the hedge funds, not a terrible result for the hedge fund managers"
He came here to talk finance and eat peanut brittle... and hes all out of peanut brittle.
he lives.
Buffet may be the best value investor of all time, but Munger, who was a former attorney, was the guy who executed the "art of the deal" to get the sweet heart benefits. This ensured Buffet couldn't lose.
true
There was no deal making crucial to Buffet’s success. Munger himself said Warren would’ve done the same without him
Manufacturing business in Hathaway company first Munger give advice to buy then Warren Buffett once try it but he fell in love it .so now 5 billlion profit earned from manufacturing industry business which is larger than insurance
@@aaryanmehta4609 Kraft Heinz merger and Bank of America bailout are a prime example of private deals rather than just investing. Buffet himself said Munger convinced him it’s better to buy a great company at a good price than buy cheap company for a great price.
@@aaryanmehta4609 Well. maybe Warren would do the same without Munger... but I choose to believe that we each need support of at least one respected peer in ways more than cerebral.
Are they drinking coke out of wine glasses and eating a box of peanut brittle?
Yep!!!!20 cokes a day!!!!!!!!!!!!! Yikes !!!! Peanut brittle from sees candies (I think) !!!
yo, those are water glasses ...short stem ... now you know which to drink what from if you ever get invited
Legendary
Warren is marketing for them... He as a lot of money in KO
Successful companies they're invested in.
I've been doing this for 23 years now and it worked for me. The only difference for me was I held some bonds for a smoother ride. I'm too much of a chicken to hold 100% stocks, so I'm a 60/40 guy for life. 60% in the Vanguard 500 Index and 40% in the Vanguard Total Bond Index. Or just put 100% in the Vanguard Balanced Index Fund. I'm not unhappy with the results. I would have done even better if I did put 100% in the 500 Index like Warren says, but I think I would have lost my mind in 08 and 09.
Market might crash within a few years. I think your choice for bonds is very wise. You just never know.
@deee dawwwggg why do you eat food do work when you die in the end .Just starve for 3 days after birth you will die on fourth day
@deee dawwwggg That is exactly what I am saying mate your comment looked negative and you feel depressed just move on
Not everyone is married or you can do like I have and married a women who makes 10 X my yearly salary, it s called marrying into money.
Very smart portfolio. My guess is that you will/have outperformed the vast majority of investors over your holding period.
Warren reminds me of the Grandfather everyone would love to have.
A legend.
☺☺☺
Great name for the channel. I was fortunate enough to have a professor of finance while pursuing my accounting degree who said this very thing that’s being talked about whenever a student asked what they should invest in. Everyone wants the “secret stock” or “best money manager” to invest in. Your best bet is an index fund that follows the S&P that has minimal maintenance fees. I know that sounds boring, but if you want the best answer, that is it. He was the reason I chose to do a double major in finance to go along with my accounting degree (I had no intention of pursuing a double major before taking his class). He also convinced me to take on an econ minor, which I did. Very grateful to have been influenced and taught by him. It makes it much easier to see thru the BS when you have a solid foundation.
Be Positive & Life Comes Around ! How's the Situation in USA ? Things are going from Bad to Worse in Mumbai , India . That Double Mutation Strain discovered last Year has wrecked havoc since March 2021 ! The Maharashtra State Govt is thinking of Complete Lockdown(we are already in 15 day partial lockdown ) .Other States like Uttar Pradesh & Delhi have Sunday lockdown & weekend lockdown respectively since this yesterday.
That Double Mutation Strain spreads via Air (not only droplets) & evades /escapes the immune system .Even people who got 2 shots of Vaccine became sick .
Most people mention Benjamin Graham's Intelligent Investor as Buffet's foundation in investing. But most investors forget when he met Munger, his investing greatly departed from Grahams to implement Mungers.
How so?
I suppose he's referring to the shift from cigar butts to cigars? IOW: great companies at good (vs bargain) prices?
@@shubhamkatyal6391 Jay answered it pretty well.
These guys are a National Treasure.
15,000 views, trust me, people want to feel special, and hedge fund managers know how to make wealthy people feel special and important, and they choose them over VOO, simple as that. VOO is not sexy, it doesn't tell you how smart you are, and how rich you are, it doesn't care about you, but it makes money for you.
49fiori How do hedge funds make rich people feel special? Free hookers and blow?
Alfred Horg buffet explained it in the video. Rich people want to feel like they have access to top talent in industry to make them more money than anyone else. So the managers say yes, you have found the elusive top talent that will multiply your money better than any other vehicle.
VOO?
Cut de Pie Fails ticker symbol
The problem lies in the misconception that the purpose of hedge funds is to make as much money as possible. The people who invest using hedge funds do not need to make any more money... They want to protect it.
What’s the point of you can’t even beat an index
Exactly right. The point of a hedge is a HEDGE AGAINST RISK. It's preservation.
Hedge funds are enormously profitable… for the hedge fund operators. Imagine raking in 2% of a wealthy client’s money without risking a dime of your own, whether your hedge fund goes up or down. Now THAT is a guaranteed return (for the operator, not the investor). Not to mention 20% if the fund actually makes money.
The book laughing at wall street touches on this. Mutual funds and 401ks just dont do better than the s&p, but they charge you 2% because you believe your funds are managed by an expert. Its a joke.
El Jay Vanguard has an S&P 500 index mutual fund that I use. Low management fees, and it serves a different goal than the ETFs and individual stocks that I own. It’s pretty much matched the S&P 500 and I don’t want to get robbed by the IRS when I retire in 40+ years, so it works out well for me.
@@johnnycanuck123video Can you elaborate more? I'm Interested
vicco90 If you’re American (I don’t know if other countries have something similar), you have the option of going for a Roth IRA. Basically, you get taxed when you put money in, but not when you take it out in retirement. You’ll pay capital gains taxes on S&P 500 indexes when you sell them off to retire. I’m not touching my Roth IRA until I retire, but depending on what I want to do (ie start a business, have a safety net that gets more interest than cash in a savings account, etc.) I can sell them off when I feel like it. I’m young, so your plans might be different depending on how old you are and what your situation is, but that’s my reason for doing each.
What do you mean by 401ks? 401ks are a type of investment account. A 401k can't have performance by itself because it's just a place to hold money. You can invest in index funds in most 401k accounts.
@@johnnycanuck123video , Be Positive & Life Comes Around ! How's the Situation in USA ? Things are going from Bad to Worse in Mumbai , India . That Double Mutation Strain discovered last Year has wrecked havoc since March 2021 ! The Maharashtra State Govt is thinking of Complete Lockdown(we are already in 15 day partial lockdown ) .Other States like Uttar Pradesh & Delhi have Sunday lockdown & weekend lockdown respectively since this yesterday.
That Double Mutation Strain spreads via Air (not only droplets) & evades /escapes the immune system .Even people who got 2 shots of Vaccine became sick .
Total respect for Mr. Buffet. He made his fortune on his own.
He's learned this from Intelligent investor book and so did I, it's written there how index will mostly perform better than hedge funds. I am proud to say I have beaten the performance of some hedge funds by investing (20% of my portfolio) in USA, Australia and other Asian countries stock index funds.
Haha, he didnt learn it from some investor book, he WROTE the book and all others copied him.
@@johnkidd1226 Benjamin Graham wrote the book Intelligent Investor. Buffett was a student of Benjamin Graham and his biggest/best disciple.
steven rushbrook bitcoin
excellent.. absolutely excellent. Warren Buffett just stuck it to Hedge fund groups. Great simple proven strategy! I'm a believer..
Tobin K Warren Buffett beats hedge funds, but trash dump worker beats Warren Buffet for eleven years through 2017!
howibeatgold.wordpress.com/2017/01/25/trash-dump-worker-invests-better-than-harvard-yale-and-columbia/
Charlie keeps looking at that peanut brittle
Please don't make fun of him
He's almost blind.
@@marshalsaini9619 not making fun. I think he wants that peanut brittle.
@@backspace4353 ok I get it
A lot of folks harp on about the performance of the S&P as a reflection of the American economy, but what about the world as a whole? Any unifying perspective on future trends of the global economy as a whole that might guide buying international indexes?
It's always more to the story. The real question is if the consultant is going to act in the best interest of their clients and look for growth and suitability, or are they really charging the client just to do nothing at all.
It's a simple investment strategy. Buy low cost index funds that benchmark the s&p 500, dollar cost average, buy and hold.
If you want low returns, sure.
@@R3tr0v1ru5 low returns? How so?
For the average folk trying to retire, index is a great way to go... Warrens method is simple but not easy. Most value investors can't even put up returns like him.
Is there a way to short hedge funds? We can buy S&P Index fund as a hedge and make money from the arbitrage over a longer period, because hedge funds will always lag Index (barring 1-2 year exceptional years).
the terrifying part about this that it is probably true for any theory driven discipline. if you're dealing with 'experts' who aren't doing nuts and bolts level work you're probably better off in your ignorance than with their input.
Can anyone please tell me the website name which warren mentioned?
warren and charlie are absolute legends.
the hedge fund industry is an absolute joke. say goodbye to "2&20" and say hello to zero-commission and zero-expense ratio ETF's and mutual funds ..... thank you Mr. Bogle!
What’s the name of the book?i didn’t catch it
3:53 Young Buffet's voice?
These two column. That show the earning different income resources. In the 2008 S&P negative in earning and other investment to different company may be by business or Illinois business such as the future also have the loss
I agree with Warren Buffett, the S&P 500 is a very well balanced index fund, you can either buy a vanguard index fund or a vanguard ETF VOO and buy it with very little management fee .04% basically almost no fees and if you want even better results combine VOO and VGT which is the vanguard information technology ETF and probably the best index fund right now. I own both VOO and VGT and convined with some other stocks like apple, AMD, Costco, Home Depot, Nike, Roku etc. I been getting 10-15% rate of return monthly
10% return monthly???? Wow
What he is saying here is true and beyond belief. Most people have no idea
Warren Buffett has common sense, however common sense is any thing but common. Greed drives people to take risks. "The greater the risk, the greater the reward" right? This may be true in individual cases, however Warren Buffett has proven that in the aggregate the rules are different. Absolutely no one can argue with his financial success.
I am a bit confused. Isnt actually that Berkshire also tries to beat the average contradicting what he says?
Exactly the point - where is the line on the chart for Berkshire performance? If there were one, it would show Berkshire's gain at roughly 130% during the period in question. A bit of an omission there Mr. Buffett. This is a sales presentation by him and a deceptive one.
Warren, when you get a chance, please tell CalPERS about index funds.
*Is that a glass of coke next to Charlie and Warren? hahah*
A point of a hedge fund is to HEDGE against the market in a case of a downturn. The people throwing their money into HEDGE funds, also throw their money into other Index funds and ETFs but choose to leave the nitty gritty hedging process to the experts.
Hedge funds often underperform the index in a bear market
The point of hedge funds is that the SEC allows you to use more complex financial instruments to amplify returns if your clients are all accredited investors. They also perform terribly during recessions. You literally stated the opposite of the truth
Their purpose is actually to avoid many regulations and steal from their customers
Mean While Charlie having War Flashbacks.
I am struggling how to relate this to Buffet's dislike of diversification. Why buy the s&p instead of value investing?
THIS IS AWESOME
Who is here from financial educations video?
5:01 DJT reference lmao
When I heard him say "Low Energy", I lost it!
there is a lot conflict of interest in the financial markets. What suited me the best was having no middlemen with COI and doing everything by myself, all the analyses, fundamentals, macro,micro, quantitative,qualitative..balancing my own portfolio combining trading and investing...reinvesting profits to get even more. That worked for me. Just me and my beliefs, underlined by my rationale. Why do I, personally, think this stock will go up in the future.
They look like Statler and Waldorf from the Muppets up there
Voltaire so true! Lol
Omg best comment ever!
Lmao
you guyz never gona come out of your TV thingy
Supposedly sophisticated people... Ha ha... That sounds so much tongue-in-cheek. Lol!
That didn’t include higher taxes because of the Hedge Funds stocks that are sold.
I think that the main reason for this is, a lot of hedge funds use options and other "insurances" to cover their positions, to "hedge" themselves, so when the S&P 500 performs well, they earn well. But when the S&P 500 loses a lot. They lose at lot less like in 2008. Add the fees on top of that, and you have what Warren Buffett is saying.
The reason why many hedge funds are worse than junk is the fact they are run worse than junk. If you go with any so called fund that focuses on day trading, ups and downs, high fees and constantly pushing share issues for no reason other than to sound cool then it will be a mess.
Buying and constantly selling shares for no reason is not a good thing and it most certainly is not investing.
Don't know the exact dates shown, but BRK-A did approx 66% gain or just a little better than S&P.
Pretty much Kraft Heinz is to blame for that one
Most the Financial Engineering / Quantitative Finance and other Physical Science graduates end up at hedge funds. They make things purposely look so complicated because that is their job! Hedge Funds are there to make simple things look difficult, to justify the performance fees /loads they charge as a percentage of NAV - Net Asset Value.
Most of the customers and regulators don't understand mathematics or physics and other sophisticated computational statistical /data science jargon. So, they fall for it!
In all fairness, a value investor like Buffet (whom I respect) challenging other fundamental investors using hedge funds as their investment vehicle in all likelihood leaves out the most valuable investors on the planet: the quants. There are quant funds that have earned 100% per year over a 10-year period and others that have averaged 27% annually since 1974. No fundamental fund managers -- or the S&P index funds -- have even come close. Many quants were so profitable they have gone private, but still continue to create incredible results and billions of dolars for their founders year-in and year-out. See, for example, Renaissance.
DaveKtver
What the relevance of that if the fund is by invitation only?
Buffet didn’t restrict the guy from picking quant funds
When Charlie coughs;
That means its time to roll out!
Kurt Hajroja ROFLMFAO
I thought 7:12 was a bug on my phone😳.
Finally, someone doing the power of "sitting on your ass" justice. Doormen worldwide rejoice.
I heard that a company named Citadel found a way to ALWAYS beat the market.
And here I am in the middle of the desert with nothing working on a ranch killing myself everyday. Oh life, so cruel.
And financial advisors
My Depression era mother always said you put money into stocks you can afford to lose. It's not a place for college funds, etc. Advice that served me well in 2008.
Gordon Adams what about the 10 years after 2008? You could have ridden the Dow from 6500 to 26000. Dollar cost averaging the S&P500 is fabulous over the long term, when you are nearing retirement start moving over to quality bonds
You still don't put in money you can't afford to lose.
But yeah you invest the rest I would hope
@@NateB I would. If the stock market crashed and I lost everything forever or it crashed and stayed low for years and years I'd bigger problems than not having money because some serious shit went down. You slowly start to sell and transition into other assets as you get older so you're not forced to sell at a low price. I bet if you dont panic and sell and have a well diversified portfolio you'd make it out of the great depression somewhat okay and then give it a while and youd be better off than before it.
@@matth23e2
Dollar cost averaging still worked during the great depression and produced 6% growth which is fantastic considering the enviroment.
day trading is a job. You derive income from it on a daily basis. there is a cost to it , but it is all deductable. If you spend 3000 to make 300,000 thats a fine cost
I hope to god Buffett and Charlie have distilled their wisdom down to the next generation in their organisation and that this extremely unusual and radical common sense knowledge is passed on.
Great time for this recommendation UA-cam
Isn't this a bit misleading without accounting for risk? Is it possible the hedge fund risk was much lower than the index risk? Shouldn't we be looking at risk to return rather than just return?
2,500 likes from ETF/ Index Fund investors and 90 dislikes from Hedge Fund Manager
I look at this chart and ask: Why do people pay hedge fund managers?
3:35 😂😂😂😂😂😂😂😂😂I screamed
Is there any reason to expect Berkshire-Hathaway to do any better than the market on average?
No, and Buffett has said as much
Index funds are very good for investors with little insight. I have done it successfully. There are other reasons for investment advisers. Such as: What happens if you get Alzheimer or Dementia? What if you can not financially trust members of your family?
You can loose all your investments from actions of a corrupt caretaker. Happened to many.
Bamboozle the investor with smart suits, charts, figures, and slick presentations. Lol
HF had the worst returns since inception because of QE. When you add volatility HF's perform well
I invest in ITOT total market index ETF. 3 basis points per year in fees...it's basically free. If you are ok with mutual funds, fidelity offers completely free total market funds now. Why would anyone pay a hedge fund manager??
thank you for bringing this to my attention, Sue Richter,
....... "and the truth shall set you free" ... :)
We need to learn the fail and not repeat the same mistake. You learn from other business fail and security fail. And try not to run like them
WoW that’s awesome
Look at the S&P for 1999 - 2009 vs Hedge Funds.
So where does this clip put Ray Dalio?
But how do people find Ray in the oceans of options.
People always ask me if I feel stocks are equal or more valuable that investment property. More profitable in a sense you may yield higher return. Sure but higher return on what? Your own money... Investment property I yield a return on the banks money... 10% of a 100k is 10k, yes very good.... I like that. Ok 8% of 500k is 40k. I'm just saying try and do both.
Erik johnson 😂 you obviously never rented out property, fees, taxes, mortgage insurance, house insurance, months without renters. Commercial real estate is where any pro invest
@@907living6 Depends what market your in big guy. Commercial real estate in Boston MA where I live. Yes, you have to be a pro. As in a corporation or have an outstanding credit line with a large debt to equity ratio on an LLC because to put 20% down, solicit a tenant and structure a lease takes big big dollars. I'm out here on my own right now. Thanks for the support chuckles.
I love how the guy on the right is munching away at peanut brittle the whole time.
Also, the little addendum at the end is kinda funny... "except us"!
What about renaissance millennium fund?
Who are the people in the universities he's talking about? Greenblatt and Greenwald?
Hidden gem channel 💎
The industries oversea has loss as well as chemical industries. As home future bad no income could be can not sale and export to oversea or by bad weather that cause farms damaging.
day trading is a waste of money
you have to pay commissions ...
your broker is getting rich not YOU!
Limitless 1 You’re telling me I have to pay 5 dollars for a possibility to make an infinite amount??? You’re stupid
TheArmy5141 trading = compounding fee and tax
There is an app called Rohinhood, did you just get out of the woods?
though Robinhood ain't exactly free... majority of retail traders won't worry about being front run so it's a good model... been waiting for something like this to hit Australia and there is now one called Stake... Robinhood article here (startupsventurecapital.com/robinhoods-exceptionally-clever-business-model-arbitraging-privacy-776663d4d855)
correction - it's not exactly front running - its more order flow but still.. when the product is free, you're the product =P
These two column have report in the financial news.
1. The Medallion fund /RenTech
2. Tudor fund
3. Bridgewater Associates
4. Citadel
5. Tower Research
1/2 trillion dollars vs bunch of leeches
That betting website sounds like illegal gambling! Haha. Oh the folly.
And he’s being further vindicated as hedge funds continue to reach new inspiring lows.
Put option investment.
5:23 Look at the crowd… This is much than Mecca …lol
Asked about the push toward passive investing in r/financialcareers and got called a 'freerider' :/
Rad Dalio is/was a hedge manager I think he is now retiring. BUt he has outperfom the market and the S&P500. His HF doesn't accept clients since 2004. there are plenty of very succesfull HF managers as well. But Buffet point is good, many charge exhuberant amounts of commissions
Rene Amaton, Good hedge funds do beat the index, their returns look low because they gobbled up the difference$ for themselves.
Curious thing is that his trading basics are quite simple too. He tracks a couple of macros and judges his investments based on those.
Never bet against Buffet !
I've been studying the hedge fund industry for a time now, and there are only a few(like 1%) hedge funds that are really legit. Renaissance Technologies, Baupost Group, Abrams Capital, Blue Ridge, DE Shaw, etc. Are some examples of legit examples, but they are a minority.
@Daniel La Zarr the ones I mentioned have a track record that goes back many years. It is impossible to be lucky for 15 years in a row. Tge average hedge fund may not beat the S&P, but there's a minority that does. Look at Reinassance(specially their Medallion fund).
What event is this? Huge arena
Berkshire Hathaway yearly meeting for stockholders.
What is the name of the guy at 1:59 ? Ted ....... ? Does anybody know?
Ted Seides
thank you
After inflation and after taxes what is left of 21.9 %? thats 10% alone for inflation. So 15% tax(prob 20%) of the 21.9% cummulative rise, thats 18% maybe, then there is inflation thats 10% then you got 8% left. But thats IF you bought at the worst point in recent history 2008.
People tend to forget inflation whis is 1.1-1,5% that gets taken from youre money each year. AND taxes. Taxes and inflation can eat a LOT through the years.
Brilliant! :)
You just KNOW Warren is the most hung investor in that arena.