User 985438

Buffett's Strange Bet

I think Mr Buffet will easily win the bet. He understands that hedge funds are a sucker's bet, just like so many other "trendy" investments created by supposedly sophisticated people (basket of subprime mortgages, anyone?). With Hedge Funds, you give someone your money to make some high-risk investments. If these investments generate high returns then that someone gets to keep a big part of those returns. If the investments go belly-up, you're out of luck and the "someone" who took your money moves on to the next sucker (I think they call that "opening up a new fund").
I can do the same thing in Las Vegas, have more fun doing it and probably have a better chance of success (but over 10-years I'm very likely to have much less money than when I started).