Guest longinvestor Posted February 3, 2015 Share Posted February 3, 2015 When I meant that Buffett has shown that returns are better with a company than a fund I certainly meant earlier in his tenure, not the last ten years. He showed the opposite. During the four years he ran both, he averaged 31.9% annual returns in the fund versus 18.5% with Berkshire. During the 12 years he ran the partnership, he beat the market by 15.5% annually, versus 11.9% for the first 12 years at Berkshire Hathaway. And those are net numbers, gross returns are even more in favor of the fund structure. My original point is lost in all the cutting and pasting. Beyond a certain size, fund companies attract more "nervous" capital. The first few partners may be solid but eventually you get people who are less committed. I have not seen a fund not get killed at exactly the wrong time, which screws the long term investors every time. Buffett avoided this by going the company route, and giving himself more or less permanent capital. His genius was in knowing his partnerships may eventually blow apart. Also, to your point. It took awhile for the Berkshire compounding machine to get going. The better question might be: How would the partnerships have performed into the mid 70s? Neither Munger, nor Sequoia faired well. Besides being prescient, the company route allowed him to get away with low expectations. No expectations really. Any expectation today is because of their track record but is solely mine, not his. Link to comment Share on other sites More sharing options...
Guest JoelS Posted February 10, 2015 Share Posted February 10, 2015 I thought about this some more, and I realised Buffett has answered this question: Ted Weschler and Todd Combs. Of the two, my pick is Ted Weschler because I believe his approach is easier to grasp and "Combs tends to get in and out of stocks far faster than Buffett. Weschler prefers to buy and hold a few stocks for a long time". 1. Before joining BRK, Weschler ran a fund from 2002-2011. He turned $150m into $2bn, up 1236% v 146% for Berkshire and 20% for the S&P500. 2. I'm not aware of a time Buffett has been wrong on picking investment managers. Lou Simpson of Geico and Bill Ruane are good examples. 3. Can you imagine both the psychological pressure (to be rational and thoughtful) of Buffett being your hero and boss, and the intellectual osmosis of being around Buffett all the time (having lunch once a week as an example). Link to comment Share on other sites More sharing options...
Guest Schwab711 Posted February 11, 2015 Share Posted February 11, 2015 I thought about this some more, and I realised Buffett has answered this question: Ted Weschler and Todd Combs. Of the two, my pick is Ted Weschler because I believe his approach is easier to grasp and "Combs tends to get in and out of stocks far faster than Buffett. Weschler prefers to buy and hold a few stocks for a long time". 1. Before joining BRK, Weschler ran a fund from 2002-2011. He turned $150m into $2bn, up 1236% v 146% for Berkshire and 20% for the S&P500. 2. I'm not aware of a time Buffett has been wrong on picking investment managers. Lou Simpson of Geico and Bill Ruane are good examples. 3. Can you imagine both the psychological pressure (to be rational and thoughtful) of Buffett being your hero and boss, and the intellectual osmosis of being around Buffett all the time (having lunch once a week as an example). This is a really cool point of view, it's probably pretty close to what he thinks! I couldn't imagine trying to stay disciplined while working for anyone much less Buffett himself. The urge to 'do something' to start showing results would seem irresistible! Link to comment Share on other sites More sharing options...
InsecurityAnalysis Posted February 11, 2015 Share Posted February 11, 2015 I'm pretty confident that whenever Buffett decides to leave BRK, it will be in good hands. Link to comment Share on other sites More sharing options...
mhdousa Posted February 19, 2015 Share Posted February 19, 2015 Anyone heard of Scott Miller at Greenhaven Road? http://www.greenhavenroad.com/ Seems to have put up Meacham like returns the last few years. Link to comment Share on other sites More sharing options...
randomep Posted February 19, 2015 Share Posted February 19, 2015 Anyone heard of Scott Miller at Greenhaven Road? http://www.greenhavenroad.com/ Seems to have put up Meacham like returns the last few years. Thanks, just read his letters, very impressive. Link to comment Share on other sites More sharing options...
Guest notorious546 Posted February 19, 2015 Share Posted February 19, 2015 Anyone heard of Scott Miller at Greenhaven Road? http://www.greenhavenroad.com/ Seems to have put up Meacham like returns the last few years. yeah i like him too Link to comment Share on other sites More sharing options...
fareastwarriors Posted February 19, 2015 Share Posted February 19, 2015 Anyone heard of Scott Miller at Greenhaven Road? http://www.greenhavenroad.com/ Seems to have put up Meacham like returns the last few years. yeah i like him too Any good articles on him? I never heard of him. Link to comment Share on other sites More sharing options...
augustabound Posted February 20, 2015 Share Posted February 20, 2015 Who is this, "Manish Pabrai" he speaks of? :P Link to comment Share on other sites More sharing options...
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