A hedge fund can take all kinds of risks with their clients $ since their cut of the profits is large and they have no consequences of loses other then having to bring in new clients. The largest gains by far I ever made was going all in on a stock and holding it for months. I don't do that anymore - maybe I should? (hehe) That being said - One of the best of all times - Jim Rodgers has this to say: "If you want to get rich... You have to concentrate and focus," he says. "The expression on Wall Street is, don't put all of your eggs in one basket. Ha! You should put all of your eggs in one basket. But be sure you've got the right basket and make sure you watch the basket very, very carefully,"
"40 percent? So little? Get out there and trade like real men!" (Kidding) _____ Full disclosure to people who are qualified to understand what you are saying is often of key importance to being ethical. If you believe the other person is not "qualified to understand" extra effort should be made, or sometimes a deal should be passed on.
%% WELL , keeping this on positive plane; worked well with opm[other peoples money] right LOL. Ross Allen made big bucks milking toxic-killer snakes, doesnt mean i should or any one else should.And to be fair, many big bucks have been made with only one company[>40%]. I do like the way[+ just reread that old news incident] he took advantage of panic sellers.Good points about Rogers co magnum+ never traded the old egg contract myself LOL And a fair question is how many money managers, say over 40 or 44 years young, put 40% of their money in only one thing+ KEEP ON DOING THAT??
there is no answer that covers all scenarios i would prefer to put all my money in Apple if the other option is to put it in 10 penny stocks.
Buffett runs things differently than this, though. His salary is 100 000 a year, win or lose. He gets almost 400 000 more alocated for security and protection. And he has the VAST majority of his wealth in Berkshire stock. In his early partnership before Berkshire (when he was small and things were softer) Buffett took: 0 percent of capital 25% of profits after the first 6 percent.
Over 50 percent of Buffett's beating the market came from his sagely leveraging his insurance float. Decades ago Munger said (paraphrasing) he was surprised major insurance companies dI'd not copy them. What I just wrote is so important to understanding how Buffett did what he did that I would like to blurt it out like 100 times. But what about the other 50 percent of his out-performance? A slice came from getting situations outside of buying stock in the market that others can not. But as a stock picker? Yes... his picks bought in the open market have provided alpha. What many do not appreciate is how much Buffett's investing has morphed and how truly deep his understanding of what he does is: Cigar buts, great companies at ok prices, leveraging his insurance float, short term trading, private equity, commodities, derivatives, large loans and bail outs, buying entire companies, tax efficiency, efficient delegation and generalship, not caving to investor perceptions, paying only one dividend because he had good use of, sizing up management.. competence and integrity, "understanding the system", RIisk Management, etc. The guy is a true mastermind .
Buffett had almost all of his personal worth in the trade. And if the trade went really bad, he still would have had a sizable war chest. But yes... I am sure Buffett was extra happy the way things went. Winning was not 100 percent.
If you cannot beat him join him. One simple way to beat Buffett, is to copy him: Buy BRK but use leverage, like him using insurance floats, to juice your returns. Works on paper but the devil is in the details.
%% ''Short term trading'', that would explain his public anger/outburst @ hedge funds LOL??. Plus Pioneer Benjamin Graham. Some one asked him,''how did you find all those great companies ??'' . Mr Buffet said ''Start with the letter A'' LOL Great quote
His short term trading was years ago, but he did it when he thought it made sense for his investors. There were many years Buffett literally looked at thousands of companies in a year, starting with the letter A.