Fools?
From Warren Buffet’s annual conference:
The “Sage of Omaha” has said repeatedly he is in fine health and does not want to retire. However, uncertainty over who will succeed the 76-year-old investor upon his death has weighed on the share price of Berkshire, the US insurance-to-clothing conglomerate he has built. Mr Buffett, Berkshire’s chief executive and chief investment officer, wants the next generation of leaders to split the roles. He has said he has three, unnamed, internal candidates for the chief executive position. During the meeting, Mr Buffett criticised the “electronic herd” of hedge fund managers, saying their fast trades in and out of assets were a “fool’s game”.
I find it hard to call Jim Simons a fool, who seems to fall within Buffett’s criticism. But frankly, I am not sure what Buffett means by in and out. He may be criticizing holding periods of 6 months as in and out. Or to him a one year holding period could be in and out. How can you call the hedge fund managers who produce billions in profit every year, not trading like Buffett, fools?
