The 1975 Buffett memo that saved the Washington Post's pension

Re:The 1975 Buffett memo that saved the Washington Post's pe... by fleitz on Friday August 16, 2013 @06:52PM (#6227178)

The problem is fundamentally that fund managers consume a large portion of the returns, after you factor the cost of the fund manager the result is negative.

To put it succinctly: On average fund managers reduce ROI.

As an alternative measurement, if you take the funds managed by most managers and look at the portfolio 1 year ago the fund would be better off with the previous year's portfolio. (This time mostly because of transaction costs)

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Re:The 1975 Buffett memo that saved the Washington Post's pe... by lutusp on Friday August 16, 2013 @07:19PM (#6227423)

> The problem is fundamentally that fund managers consume a large portion of the returns, after you factor the cost of the fund manager the result is negative.

Yes, a point I make in my article, but didn't make in my post. Fund managers are very difficult to justify.

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