Thread by @ChrisBloomstran

Ten years? Did you read the disclosure in YOUR letter stating YOUR returns begin on 6/1/11, or did you forget when you launched your first fund? You don’t appear to even have a ten-year track record, @chamath. Looks like 9 yrs 7 mos. The whole thing is confusing. Intentional? 1/

https://twitter.com/chamath/status/1399223603208474627

Are you desperate to include Berkshire’s 48.7% decline and the S&P 500’s 26.4% drop in your “long-run” comparison? Actually, it appears that you do have a 10-year record. As of tomorrow...Of course a year-to-date presentation would have to include the losses on the four SPACs. 2/

Next, I’m very confused by your reply stating, “the discrepancy in your S&P returns vs ours is because we calculated it as an IRR based on when we made our investments.” What is “IT?” You label your returns as IRR, but are you saying you calculated index returns as an IRR? 3/

IRR’s incorporate cashflows. What cashflows would you use for an index? Must say in three decades of investing I’ve never seen an index presented as an IRR. Some clarity here? I’d assume you're talking about your returns? Presenting gross without disclosing net returns? Hmm? 4/

May I recommend you take down your letter and revise it with corrections? I’d highly recommend if you insist on presenting your returns as IRR and gross of fees that you also present TWR (time-weighted returns) and net of fees (guessing those are not insignificant) as well. 5/

Per your disclosure, it appears you operate 5 LPs & 6 SPACs. Surely you have data allowing easy calculation? I’d guess the LPs are valued no more frequently than monthly? You obviously have the cashflows invested, allowing the calculation of IRRs, which can overstate returns. 6/

Calculating TWRs will be easy. And more honest. You can hire a CFA to do so. In fact, fixing the math in your letter really can be done by an undergraduate intern with freshman-level classwork completed in calculating the time value of money and proper table-labeling skills. 7/

Finally, it’s come to my attention that the comparison of a thoroughbred to a jackass is unfair. I completely agree, and apologize to jackasses everywhere, great animals to be sure. In the meantime, I'd lay off the comparisons to Mr. Buffett and Berkshire.