I have just shifted my kiwisaver into a predominantly bond fund - to capitalise on any drop in rates.
Was good earning 5% in the cash fund for a bit.
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I have just shifted my kiwisaver into a predominantly bond fund - to capitalise on any drop in rates.
Was good earning 5% in the cash fund for a bit.
I didn't start as a value investor... I think most, including myself, start obsessed with the quick profits that trading promises, but doesn't deliver. Some of us eventually realise that it's simply not possible to expect trading to outperform investing. Too many transaction fees whilst participating in a zero sum game is always going to get beaten by low transaction fees in a positive sum game over the long term.
This isn't a case of not being able to teach a young dog new tricks, all evidence points towards trading having worse returns than investing for the long term in productive assets.
I have studied their investment managers in great detail actually. I know their history from high school.
This is what lead to me being able to buy a good chunk of Davita in the low 70's a few weeks back. Highlighted the opportunity here.
Weschler has almost his entire personal portfolio in the company, some 200 odd million dollars.
I know it's different but why doesn't Buffett hire the best?
Scale. Trading only works with a small account; Buffett himself said this:
"If I was running $1 million today, or $10 million for that matter, I'd be fully invested. Anyone who says that size does not hurt investment performance is selling. The highest rates of return I've ever achieved were in the 1950s. I killed the Dow. You ought to see the numbers. But I was investing peanuts then. It's a huge structural advantage not to have a lot of money. I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that.
Maybe I misunderstood the quote but from Investopedia:
BlackRock is a Berkshire competitor in this sector. It's the world's largest public investment firm with around $8.5 trillion in assets as of 2022. Unlike Berkshire Hathaway, BlackRock does not participate in proprietary trading.
https://www.investopedia.com/ask/answers/051915/who-are-berkshire-hathaways-brka-main-competitors.asp