Submitted by LeverageShares t3_108bg5r in dataisbeautiful
[deleted] t1_j3r8a52 wrote
Hopefully he dies soon before he can leech any more money from the rest of us.
Rest in piss.
SUPERSAMMICH6996 t1_j3rh3xj wrote
Damn... why are you so salty? At least Buffet is one of the few multi-billionaires who doesn't seem to have a shady past nor preys on others in order to make his gains. He is just a really gifted investor.
urgjotonlkec t1_j3rifzk wrote
Or maybe just a very lucky one. There's a lot of studies that suggest no such thing as a "gifted investor" actually exists. Even Warren himself seems to largely endorse this belief.
LordFaquaad t1_j3rmuts wrote
No one lucks into 110 billion lol. There has to be some skill
urgjotonlkec t1_j3rp7w7 wrote
Not really. Let's say you go to Vegas with $10,000 and put it all on black at the roulette table. There's a roughly 50% chance you double your money and 50% chance you lose it all. Win 23 times in a row and you will almost 110 Billion. That sounds extreme unlikely, but if ever US adult did it you would expect to have made 20 people succeed. Ironically that's roughly the same order of magnitude of centi-billionaires in the US.
LordFaquaad t1_j3rqk9v wrote
The difference is that roulette is a game of chance and investing in good companies isn't. That's the entire thesis behind value investing which buffett followed. The luck he talks about is getting in at the right time and exiting at the right time.
Speculation happens in the market but the only people that really benefit are the HFT traders, hedge funds and quantfunds / banks due to the trade volume/ speed of transaction. The market isn't based so much on chance as people think especially if you have enough money to move the direction of the stock
urgjotonlkec t1_j3rs2vy wrote
In any efficient market winning and losing is 100% luck just like a casino. Obviously if you have enough money you can push people around in a way that an average investor can't, but even getting to that point takes a lot of luck.
LordFaquaad t1_j3rzq86 wrote
You're telling me that every major investor is just luck? It had nothing to do with skill, knowledge and understanding?
Also the efficient market states that prices are representative of assets. This is simply not true in the current market. The market isn't a casino that has priced in everything all thr time. The companies have Financials and based on those Financials and other factors, investors make decisions.
urgjotonlkec t1_j3s198c wrote
>You're telling me that every major investor is just luck? It had nothing to do with skill, knowledge and understanding?
Yes, that's a pretty common school of thought supported by considerable research. For instance people have looked at the fund managers with the highest performance in given years and there's no correlation year to year.
mackinator3 t1_j3rt2kn wrote
No. It's time.
LordFaquaad t1_j3rzfl8 wrote
Then invest in Lehman in 2000 and lmk how that investment turned out
mackinator3 t1_j3s0doq wrote
You are arguing AGAINST luck right?
PGDunk t1_j3rnawe wrote
“He’s gifted in exploitation”
ke7kto t1_j3s8zzy wrote
Maybe you don't know he's committed almost his entire fortune to philanthropy. I wish all the world's billionaires would commit to something like that.
ThisGuyCrohns t1_j3w1gcx wrote
We should have billionaires where we hope they do the right thing.
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