1/ Buffett and Munger's biggest edge
Arlington Value's Allan Mecham was labelled as "The Next Warren Buffett". The numbers spoke volume as Mecham cumulatively outperformed the index by a whopping ~1800% in first 15 years as fund manager.
Simply jaw-dropping!
Arlington Value's Allan Mecham was labelled as "The Next Warren Buffett". The numbers spoke volume as Mecham cumulatively outperformed the index by a whopping ~1800% in first 15 years as fund manager.
Simply jaw-dropping!
2/ 10 years ago, @manualofideas published an excellent interview of Mecham in which he talked about investor base being a source of alpha.
"Client alpha" is not talked about a lot in the investing business, but it certainly can be a big source of alpha in a time like this!
"Client alpha" is not talked about a lot in the investing business, but it certainly can be a big source of alpha in a time like this!
3/ Mecham is only 43 years old.
Yet, this week he decided to wind down his fund in next 6-9 months citing fund's underperformance of major indexes by a "wide margin" and the stress emanated from managing money during this exceptionally volatile Covid-19 crisis.
Yet, this week he decided to wind down his fund in next 6-9 months citing fund's underperformance of major indexes by a "wide margin" and the stress emanated from managing money during this exceptionally volatile Covid-19 crisis.
4/ Buffett is 89 years old. Munger is 96.
It is not their investing talent, but the longevity of their track record that truly astonishes me.
Will the world ever see again a nonagenarian allocating billions of capital?
It is not their investing talent, but the longevity of their track record that truly astonishes me.
Will the world ever see again a nonagenarian allocating billions of capital?
5/ Buffett and Munger's equanimity during market crisis or a long period of underperformance is perhaps impossible to match.
We can remain within our circle of competence, focus on owner's earnings, and avoid companies with accounting shenanigans. But can equanimity be learned?
We can remain within our circle of competence, focus on owner's earnings, and avoid companies with accounting shenanigans. But can equanimity be learned?
End/ It is, of course, a rhetorical question.
And perhaps that is the biggest edge of Buffett and Munger!
And perhaps that is the biggest edge of Buffett and Munger!
