Warren Buffett was referring to traditional (long-only) investment funds... He himself was for many years running a hedge fund (and had learned from the pioneer

Warren Buffett was referring to traditional (long-only) investment funds... He himself was for many years running a hedge fund (and had learned from the pioneers of hedge fund investing.) https://www.bloomberg.com/view/articles/2012-04-24/what-was-the-very-first-hedge-fund-ask-warren-buffett https://www.bloomberg.com/view/articles/2012-04-24/what-was-... http://www.forbes.com/sites/randalllane/2012/03/26/warren-buffetts-50-billion-decision/#5eefecfda57d http://www.forbes.com/sites/randalllane/2012/03/26/warren-bu... https://www.quora.com/What-was-the-fee-structure-of-Warren-Buffetts-first-investment-partnership-started-in-1956 https://www.quora.com/What-was-the-fee-structure-of-Warren-B...