How they really made lots of money...

Discussion in 'Trading' started by crgarcia, Mar 23, 2007.

  1. Warren Buffett, George Soros, Peter Lynch, Jim Simons, Paul Tudor Jones, they all have made hundreds of millions, if not billions of their investments.

    But rather than focusing on options strategies that yield 100%+ per year, they focused on strategies that may just yield an 15 or 20% per year, but in a very consistent way, and allow to allocate billions of dollars.

    This is the ultimate leverage: investing other people money.
    This is the only way you can accumulate a really big fortune, even if only 1% of the -other people- money goes to your pocket.
  2. pretty good overview
  3. Not really... what you don't hear is the ones who managed other peoples money, and ended up blowing out and getting shot in the head...

    (it has happened)..

    The ultimate leverage is: doing something you LOVE and doing it well.. That's the only way to get rich.
  4. gkishot


    How people's money can leverage their 20% return? It's still the same 20%. This guys are not in some ponzi scheme with more and more people pooling their money to make very rich just a few.
  5. omcate


    James Simons' multi-billion Medallion Fund has averaged 35.6% annual returns, after fees, since 1989. Excluding 44% performance fee, and 5% management fee, the average annual return will be much higher, probably close to 70%.
  6. Paul Tudor Jones averaged 100% or more for 10 years straight.
  7. I have beat Soros and Buffet since late June of 2006.

    I think I'll go launch my "Buffet Beater" Hedge Fund now.
  8. hels02


    LOL! Me too!!! And I never went short once. :D :D
  9. What ten years is that? Even adding his fees back in,
    you are off by a factor of two at least.

  10. Simon didn't even own Medallion fund until Jan 1, 1991.
    Including 1990, a 55% year, distort's the Rentec track
    record. And 35.6% ? Where did you get that figure? It
    is a few percent high, above even Rentec's self reported

    Rentec was founded in 1982. Why do you leave the years
    1982 to 1989 out of the track record? And you forgot to
    include Equimetrics, or the mortgage backed fund, or a
    few other funds that crashed and were quietly folded.

    It was 20% for much of that period, genius. Where are
    you getting your information?

    Average annual return on all public money managed by
    Rentec, 1982 to present, including all funds open to the
    public, before fees, is under 30%. And that is self reported,
    it has not been audited.

    For a trader, gullibility is not an advantageous personality

    #10     Mar 24, 2007