ritholtz

On Investing Like Billionaires: The Cases of Kerkorian and Buffett

Consider Warrren Buffett's Level Three (LVLT) deal some years ago -- it was a securitized transaction for Buffett, he got preferred status in the event of a liquidation, and all sorts of advantageous terms on the buy in.

Everyone else -- the public -- who followed him got common stock, with all the risks and none of the protections of Buffett's deal. Even if the returns end up being identical 10 years later, on a risk adjusted basis, Buffett did so much better than the imitating public . . .