Author Topic: Hedge fund manager fails to beat the market, owes Warren Buffett a million bucks  (Read 2494 times)

LennStar

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Just link spamming just to have a HARHARHAR on them who rightfully deserve it!

https://boingboing.net/2017/09/18/mediocritocracy.html

Quote
Ten years ago, Warren Buffett bet celebrated hedge fund manager Ted Seides of Protégé Partners that an investment in a low-cost S&P 500 index fund would outperform an investment in Seides's "fund-of-funds," a basked of five funds managed by his firm.

Roe

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Thats hilarious!

Now let's sit back and have a second laugh at the people that wont learn from this.

StockBeard

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At least that guy put his money where is mouth was. If I recall correctly, Buffet's bet was open to all fund managers, and only a couple of them took the bet. The thousands of others implicitly admitted they were frauds by not even joining.

My point is that this guy at least felt like he had a fighting chance, which in my eyes makes him way more honest than the others who just knew they would lose.

Travis

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At least that guy put his money where is mouth was. If I recall correctly, Buffet's bet was open to all fund managers, and only a couple of them took the bet. The thousands of others implicitly admitted they were frauds by not even joining.

My point is that this guy at least felt like he had a fighting chance, which in my eyes makes him way more honest than the others who just knew they would lose.

Or he lost a bet before the bet and got picked by the other managers to be the one to fall on the sword.

LennStar

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At least that guy put his money where is mouth was. If I recall correctly, Buffet's bet was open to all fund managers, and only a couple of them took the bet. The thousands of others implicitly admitted they were frauds by not even joining.
Or they just don't do betting, especially with money (privately lol). Like me.

StockBeard

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Or they just don't do betting, especially with money (privately lol). Like me.
But if they were confident in the service they offer, they would probably assume they have a higher than 50% chance of making it though, don't you think? At which point it's less gambling, and more of a calculated risk. Clearly, they calculated, and reached the conclusion they had a high chance of losing.

Faramir

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He may have lost the bet but he'll still be laughing all the way to the bank even after paying the $1m.  Think of what he "earned" in fees over those 10 years.

MgoSam

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I'm guessing that this hedge manager advertised the fact that he was putting his fund against Warren Buffett and that along probably raised a ton of money, and generated enough fees for him that he was able to make a profit even after paying $1M.

slugline

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Surely the charitable tax deduction will cushion the blow a little.