Warren Buffett’s admirers are legion, and disinclined to take slights against the grand old man lying down. So when the mouthy mullah of the Robinhood set declared—in what one can only hope will eventually lead to a catastrophic bit of karmic comeuppance—investing to be “easy” and himself to be a “better” investor than the “washed-up” idiot of Omaha, you could be sure that a comprehensive defense of Buffett’s hanging out on the sidelines during the market rally was coming. Here’s “Wall Street’s biggest influencer” to the rescue, with the exceedingly plausible argument that the ways of the Buffett are far too nuanced and subtle for the likes of Dave Portnoy to understand.
‘You have to be willing to look like an idiot in the short term to get the best long-term results. I’d suggest that because the future has become increasingly uncertain, he’s preparing for the widest range of possible futures….’
“People always seem to want the optimal solution for the moment, and thus he ends up looking out of touch at times,” Parrish, a longtime attendee of Berkshire’s annual meeting, told Business Insider. “But you have to be willing to do something different to get different results….”
“You can’t win if you don’t finish... you can’t compound if you zero out,” Parrish said. “In periods of high uncertainty, you want to ensure you have the most possible options.”
Clearly, Mr. Parrish has never listed to Barstool Sports. But it isn’t just El Presidente coming at Uncle Warren. One of the most prominent people in an industry that’s taken it’s fair share of Buffett bashing is taking advantage of the Berkshire chief’s apparent pandemic pratfalls to get in a few shots of his own, namely that arguably the most successful investor of all time isn’t half as good enough to work at his hedge fund.
[Buffett’s] Sharpe ratio is only about 0.7. “Well, 0.7 wouldn’t get you into Marshall Wace or any of the top hedge funds….” Most of Sir Paul [Marshall]’s team at Marshall Wace are on 1.5 or better.
Fund managers who prevent investors taking their money out but continue to charge fees are “a disgrace to the industry,” says one hedge fund manager…. Neil Woodford, who was once a City darling until his funds fell from grace, continued to charge investors in his Equity Income fund after banning redemptions in 2019, in effect making the charge unavoidable and raising up to £100,000 a day from investors.
“He gated and charged. That’s a disgrace,” Marshall said.
Warren Buffett is ‘willing to look like an idiot in the short term,’ according to ‘Wall Street’s biggest influencer’ [MarketWatch]
‘Buffett isn’t Sharpe enough for City job’ [The Times]
Taking fees while freezing investors’ cash is a disgrace, says hedge fund boss Sir Paul Marshall [The Times]
Hedge funder labels Woodford a ‘disgrace’ for charging fees on suspended fund [Portfolio Adviser]