4 ms·

Hedge funds have their problems as investments, and what they do varies wildly, so I suspect Buffett is generally right, but he got really lucky with the timing

Hedge funds have their problems as investments, and what they do varies wildly, so I suspect Buffett is generally right, but he got really lucky with the timing of this bet. He made it right before a regime change with low interest rates that pretty much lifted all boats, especially large cap ones.

ProjectArcturis 3y ago
You're saying he was lucky to start a bet in 2007 that stocks would go up?
- dehrmann 3y ago
  It was a bit of a lost decade for hedge funds. https://www.ft.com/__origami/service/image/v2/images/raw/ftcms%3A6e99f4f8-1398-11e9-a581-4ff78404524e?source=next-article&fit=scale-down&quality=highest&width=700&dpr=2 https://www.ft.com/__origami/service/image/v2/images/raw/ftc...
  - ProjectArcturis 3y ago
    ... it was also when stocks had their greatest crash since the Depression?
nosefurhairdo 3y ago
> From January 1994 to June 2023—through both bull and bear markets—the passive S&P 500 Index outperformed every major hedge fund strategy by over 2.8 percentage points in annualized return. https://www.investopedia.com/articles/03/121003.asp https://www.investopedia.com/articles/03/121003.asp Buffet didn't get "really lucky." The likelihood of a hedge fund beating the S&P 500 over a 10 year period is quite low. He would've been really unlucky to lose that bet.