Re:Buffett wins $1M decade-old bet that the S&P500 would out...
by lootsauce on Monday September 18, 2017 @10:14AM
(#15276111)
Or perhaps Buffet has an information asymmetry. Don't you think when he is interested in buying a company that may not even be in the public market that the meetings, tours of facilities and financial due diligence represents a significant information asymmetry. This information is probably available to any who seek it but not practically to most.
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Re:Buffett wins $1M decade-old bet that the S&P500 would out...
by valuearb on Tuesday September 19, 2017 @01:25AM
(#15282005)
Well first, Buffett still buys lots of shares in public companies. His first few decades were almost entirely public companies. Second, any investor running an investment fund can make offers on private businesses, and get the same tours.
Its not an informational asymmetry, it's what you do with it. Walter Schloss is another great example. Beat the market by 5% a year for over 40 years, did it buying exclusively the doggiest public companies. He was the ultimate cigar butt hunter. His advantage wasn't information Wall Street didn't have, it was his willingness to use information Wall Street wouldn't, to invest in opportunities they would not.
Buffett does have one informational edge, his experience and judgement. He knows how value works, he has total confidence it works, and he never panics, even when down 50% in 2008. He never leverages himself in a dangerous manner, never gives someone else control over his decisions.
Re:Buffett wins $1M decade-old bet that the S&P500 would out...
by gozur88 on Monday September 18, 2017 @01:02PM
(#15277573)
That's the whole point of a mutual fund (of any kind). You're paying them to do things you couldn't possibly justify given the size of your portfolio. If all they're doing is sifting through quarterly reports they're not providing much value for your fees.