Ah yes, another chance for him to tell everyone that they are idiots unless they see things exactly his way…
…and please not to ask him any inconvenient questions.
As far as expected returns go, I think this is the official party line:
http://www.cfapubs.org/doi/pdf/10.2470/rf.v2012.n1.1
Haven’t read it all, but liked what I did.
@bchad … yea seriously. I feel like I will be cringing/half looking away as I scroll through that thread.
@poulin … thanks man, I downloaded that for a later read. PRECIATE IT!
I can’t stand his books.
That’s a good link. Thanks.
I had a quick scan through and the only thing I would criticise is that the private equity section relies on academic work which is now out of date. When the CFA comes to update that section, you can expect the tone to be a lot more positive about historical private equity returns.
Imagine this - you just graduated with econ degree and the fin crisis is unfolding. You recognize that this has potential to completely collapse the entire global financial system. Then you read about it in papers everyday. You want to make money in this situation. You make a bet - govt has to bail them out - so buy it when everybody else is screaming and pulling their hair out. Calmly watch the govt help you make a tidy sum. If somebody asks you, you can say with a straight face - the govt should bail them out (as did every respected economist - there was no political divide then). You actually don’t even have to lobby/use your own political capital here. Just see the signs - both sides of aisle agree that bailout is responsible and necessary.
I don’t think it takes a genius. WEB just happened to act on his instincts and had the money in his pockets to speculate with.
Love the comments:
“Warren Buffet is a greedy old miser. He smiles a lot and acts like your jolly old uncle, but in fact he is just a greedy old miser.”
Fck WB!
This is great, but I’m a biased BRK shareholder. yeeeevil warren