Kass: Rabbi and the Oracle

[Vish_ram]

Interesting story

 

http://www.thestreet.com/story/11941134/1/kass-the-rabbi-and-the-oracle.html?puc=yahoo&cm_ven=YAHOO

 

Is it just a coincidence that the people who invested their life savings with Buffett during the early years never splurged and led a simple life? Contrast this with lottery winners, a bulk of them declare bankruptcy after few years

[valueorama]

Is it just a coincidence that the people who invested their life savings with Buffett during the early years never splurged and led a simple life?

 

Contrast this with lottery winners, a bulk of them declare bankruptcy after few years

 

First one, i dont think there was any restriction on investing in HF like it is now. I think if you want to invest in an Investment partnership now, you need to have $1mm or high earner. During 50s-60s, i guess you would these middle class earners as your clients.

 

Second, lottery winners dont earn money over time like buffett's clients. Plus there is survivorship bias with buffett's investors. I am sure there are so many who held BRK for couple of years and sold it for various reasons.

[rmitz]

Is it just a coincidence that the people who invested their life savings with Buffett during the early years never splurged and led a simple life?

 

Contrast this with lottery winners, a bulk of them declare bankruptcy after few years

 

First one, i dont think there was any restriction on investing in HF like it is now. I think if you want to invest in an Investment partnership now, you need to have $1mm or high earner. During 50s-60s, i guess you would these middle class earners as your clients.

 

Second, lottery winners dont earn money over time like buffett's clients. Plus there is survivorship bias with buffett's investors. I am sure there are so many who held BRK for couple of years and sold it for various reasons.

 

Of course, calculating inflation that 70k then is like 500k today.

[JBird]

Kass was interviewing friends of Buffett who didn't know him on a business level? For what purpose? This is the sort of info that helps me explain why he did so poorly at the meeting.