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I always felt that Soros was better than Buffet but could never adequately explain why. I like Nassim's explanation that since Soros made more decisions, his ou
by ruang 16y ago
I always felt that Soros was better than Buffet but could never adequately explain why. I like Nassim's explanation that since Soros made more decisions, his outcome is less likely due to luck.
In other words, the more your ability is tested, the more likely your results are closer to the expected value as randomness negates itself out.
- allengoodman 16y agoHis characterization was interesting, but I'm not sure if I agree. Since the crisis, Warren Buffet acquired 10% perpetual preferred stock of Goldman Sachs, invested $2.6 billion into Swiss Re, and acquired Burlington Northern for $24 billion. Three deals, each of which was different in composition, cost, and market. Moreover, I suspect each will be success and none wholly initiated by a "certain earnings profile." Nonetheless, while I think the comparison is meaningless, the underlying logic is intellectually attractive.
- chrismealy 16y agoIn Buffett's early days (when he was returning over 30% year after year) he did lots of arbitrage. He mostly got out of it in the 1960s. Taleb probably doesn't know about that.