Warren Buffett’s friend, Robert P. Miles, Praises Millionaire Teacher
Put away your checkbook. Instead give this fabulous book to every young person and you will be gifting them a lifetime of financial independence and success.
Author of: Warren Buffett Wealth, The Warren Buffett CEO and Warren Buffett’s Berkshire Hathaway
Few people have greater knowledge and access to Warren Buffett, than Robert Miles.
As a best-selling author, and one of the world’s authorities on the Oracle of Omaha, I was thrilled at how he enthusiastically embraced my manuscript for Millionaire Teacher, The Nine Rules of Wealth You Should Have Learned in School.
Mr. Miles is a stock picker, and his generous support for my book had me breathing a sigh of relief: after all, my book’s final chapter is about picking stocks, like Warren Buffett. And Robert Miles is an expert in that vein.
Shifting topics a bit…..
Last week, Robert Miles sent me an update on Warren Buffett’s bet that hedge funds don’t add a heck of a lot of value for investors, thanks to their high fees. …read the article
In 2008, Protégé Partners LLC, a New York money-management firm, decided to wager Buffett that a fund of five hedge funds (selected by them) would beat a S&P 500 index fund over five years.
Shortly after the bet, the markets collapsed.
And the hedge funds took an early lead, based on their ability to invest in more than just the stock market. But over the past two years, the S&P 500 has gained ground. And I’m with Buffett on this one. After all fees, I think the S&P 500 will beat the hedge funds.
Having said that, here’s a more interesting comparison:
Considering that the hedge funds are allowed to invest in more than just the stock market, they should do better when markets fall.
But are they ahead of a simple, Vanguard balanced index fund between 2008 and 2010? After all, a balanced fund has stocks and bonds within it.
The Protege hedge funds were down 4.2 percent, from 2008 to 2010.
A balanced index with Vanguard (with no fast-thinking fund managers at the helm) would have grown 5.9 percent from 2008 to 2010. I wonder if the hedge fund managers are embarrassed by that.
And I wonder if Robert Miles is smiling.