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by rgifford 1272 days ago
This is hilarious. You're wrong for like every reason, but I'll give you 3:

1. Berkshire has not significantly outperformed the S&P500 for 20 years. Go take a look, they've basically converged. Markets become more competitive over time. People lose their edge.

2. Investment returns in excess of diversified market returns (which represent underlying growth across the entire economy) ARE zero sum. If you get them, Berkshire does not and quant firms do not and hedge funds do not. If you can beat these guys, don't use your money. Go get a job doing this.

3. Watching Michael Phelps swim is a terrible way to learn to swim. Anatomically he's totally aberrant, but he's also optimizing for fractions of a second racing across an indoor olympic pool. That's all inapplicable to basically everyone swimming anywhere.

You're choosing not to hear what folks are saying and I wish you luck. Your hubris will be rewarded justly by markets, but perhaps only after a few confidence building wins that convince you random jitters of a trend line are really signs of your hidden brilliance yet to be recognized.

2 comments

Berkshire doesn't have a chance to outperform because it's too big. It can do a little bit better (either in EV or in some risk adjusted EV measure) but it's able to capitalize on opportunities smaller traders have.
Yes, it's better to take advise from someone who's doing a little bit better than you.