Thank you for this explanation. I have never understood the apparent contradiction until now.

Quote Originally Posted by SBQ View Post
Also some of you may ask why has Buffet been able to beat the market index for MOST of the years since he took over Berkshire? I mean it's like he's speaking in contradiction to himself. It's because his caliber to investing differs to managed fund. For eg. brokering deals for merger and acquisitions, being able to led out cash at obscene rates, the list goes on and you can bet NONE of the Kiwi Saver funds would be in any position to make such deals. During the GFC, Goldman Sac needed $$... so they went to Buffet, in return he demanded 10% on the $ + with warrants and options. You can bet the strike price on the options deal with GS was to his terms. So all these gravy incomes come into Berkshire that benefit the shareholder. As his right hand man said to Buffet at the at their AGM some years ago, "Why are you telling the audience this?.. they've essentially done better than the index ETF by buying Berkshire".