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The lesson I take from the bet is: you can only be very smart if you have a lot of money. Otherwise, do no try in the long run*. And I stick to that (because I

The lesson I take from the bet is: you can only be very smart if you have a lot of money. Otherwise, do no try in the long run*. And I stick to that (because I just want to keep a living in the future, not to be rich). "Risk-adjustment" is just another metric which makes not much sense: either I have the money or I do not. Money now is worth more than possible money tomorrow. About "the highest performing funds of the past 10 - 30", which ones, the two first ones, the Medallion fund? those which cannot be used by ordinary people? I know Buffet is not exactly the paradigm of "ordinarity" but nevertheless, I think his intention with his stubborn support of "just the market" is to teach that "ordinary people can very seldom outperform the market".

fractionalhare 6y ago
> Risk-adjustment" is just another metric which makes not much sense: either I have the money or I do not. Money now is worth more than possible money tomorrow. If you think risk-adjustment doesn't make sense as an evaluation metric, you should just sell naked puts or calls on a stock which doesn't seem volatile. You're going to generate spectacular returns for a while. Then you're going to blow up. On the other hand a portfolio with relatively low idiosyncratic risk and low market correlation (beta) might be safely levered up to a higher absolute return than e.g. SPY with less overall risk and volatility. Like I said...it's complicated.
betterunix2 6y ago
"Money now is worth more than possible money tomorrow." That is antithetical to investing...