http://www.valueinvestingnews.com/long-bets-buffett-vs-protege-partners Comments for "Long Bets - Buffett vs Protege Partners" en http://www.valueinvestingnews.com/long-bets-buffett-vs-protege-partners#comment-1699 <p>Buffett gave up significant edge when he agreed to 5 hedge funds. </p> <p>Here's the logic, statistical fluctations accumulate, they do not average out or cancel out as commonly assumed. Therefore, when you have 10 companies facing enormous drag due to fees, that creates a lot of statistical fluctuations. 10 funds times 10 years gives Buffett 100 fund-years of results where the drag from investment fees would work against them. The other party to the trade was smart to get 5 funds meaning it now faces 50 fund years (of performance drag), which is a smaller sample size.</p> Mon, 16 Jun 2008 18:44:25 -0400 Chungst comment 1699 at http://www.valueinvestingnews.com http://www.valueinvestingnews.com/long-bets-buffett-vs-protege-partners <p>Read why Buffett bets the S &amp; P 500 will outperform a portfolio of funds of hedge funds over a ten year period. One million dollars is at stake!</p> http://www.valueinvestingnews.com/long-bets-buffett-vs-protege-partners#comments Superinvestors BRKa Thu, 12 Jun 2008 23:26:26 -0400 George 4553 at http://www.valueinvestingnews.com