Reg FD killed Buffett's Alpha per Chamath

[kh812000]

Warren Buffett Generated Double The Market's Returns—Until Regulation Changed The Game

[Gregmal]

The cult will find this blasphemous. But rational folks will just shrug and say so what? This is largely true for everyone. Big investors always enjoyed the good ole boys club treatment. 

Edited April 18 by Gregmal

[73 Reds]

7 minutes ago, Gregmal said:

The cult will find this blasphemous. But rational folks will just shrug and say so what? This is largely true for everyone. Big investors always enjoyed the good ole boys club treatment. 

Right; any time the playing field is leveled you lose your advantage.  Which is why it is usually much more fun playing on an uneven playing field.

[Spooky]

Chamath wants to be perceived as equal or better than Buffett so badly... it's sad. I will always remember him as the SPAC king.

[Parsad]

16 hours ago, Spooky said:

Chamath wants to be perceived as equal or better than Buffett so badly... it's sad. I will always remember him as the SPAC king.

 

+1!  All wannabees...and neverbees!  Why do people listen to this goof among so many other goofs? 

 

Reg D made no difference to Buffett making $100B+ on Apple!  The most well-known stock in the world, with filings galore, trading more than anything else...and he still made more for Berkshire with that one stock than anything else in its history.  Level playing field and all! 

 

No one will give two shits about Chamath 10 years from now.  Ackman is one of the few who somehow remains relevant when he really shouldn't be. 

 

Everyone else...99% are false prophets!  Cheers!

[DooDiligence]

[Intelligent_Investor]

No, Berkshire just got too big. Hard to generate 30% returns on $1 trillion without buying massive stakes in big tech....

[Gregmal]

5 hours ago, Intelligent_Investor said:

No, Berkshire just got too big. Hard to generate 30% returns on $1 trillion without buying massive stakes in big tech....

Berskhires market cap at YE 2000 was about $100B, not $1T. And most of "big tech" didnt even exist yet. 

[thepupil]

Berkshire returned 8%/yr (113%) in the 10 years after reg D went into effect. The S&P 500 was flat. 

 

Berkshire returned 10.3%/yr (1114%) in the 25.5 years since reg FD went into effect. The S&P 500 has made  8% / 611%

 

On a trailing 10 yr basis, Berkshire lags market (12.7% vs 13.6%). Berkshire certainly has a smaller and smaller investable universe and i'm pretty bearish on their ability to generate stock picking alpha. don' think they should really try to (and not clear to me Greg will...most recent article is he's selling equities despite sitting on tons of cash). 

 

I don't think reg FD has much to do with anything and wouldn't believe a word that Chamath said, even if i didn't have data which directly contradicts it. 

 

 

 

 

 

[Pellom]

Chamath is just pumping the prediction markets. He seems to be insinuating Buffett was working with insider information and now having to report holdings every three months has supposedly ruined Berkshire's performance. 

[whatstheofficerproblem]

I will take Buffett criticism from anyone and everyone except this crook. 

[tnathan]

He's pretty unqualified to talk about many of the things he claims to be an expert in, but his investment track record from a VC angle has been incredible. Don't have to like the guy to admit he's made some bangers (Groq)

[Parsad]

1 hour ago, tnathan said:

He's pretty unqualified to talk about many of the things he claims to be an expert in, but his investment track record from a VC angle has been incredible. Don't have to like the guy to admit he's made some bangers (Groq)

 

I think he's blow through far more capital than he's made in his various investments and SPACs.  Cheers!

[tnathan]

23 minutes ago, Parsad said:

 

I think he's blow through far more capital than he's made in his various investments and SPACs.  Cheers!

He made like $4B on Groq. That's the beauty of VC