Tuesday's Great Debate: Soros, Buffett, and Models
The Black Swan author Nassim Taleb was in Canada last week for the Salon Speakers series and was asked by an audience member; if given a choice between investing withand billionaire investor George Soros, who would he pick?
The former prop trader said he would probably pick Soros, and argued that:
"I am not saying isn't as good as Soros," he said. "I am saying that the probability Soros's returns come from randomness is much smaller because he did almost everything: he bought currencies, he sold currencies, and he did arbitrages. He made a lot more decisions. followed a strategy to buy companies that had a certain earnings profile and it worked for him. There is a lot more luck involved in this strategy."
James Picerno wrote an interesting article on it and using Alpha and Beta, tried to quantify which of the two has truly added value to their funds.
He didn't get an answer, so I'm passing the ball to you; who do YOU think is the better investor?
|Education:||LSE||Columbia||Nickname:||The Man who Broke the Bank of England||The Oracle of Omaha|
|Years investing:||(Quantum Fund)38||(Berkshire Hathaway)40||Investment Style:||Global Macro||Value/Growth Hybrid|
|Rough Annualized Returns:||32%||20.3%|
|Net Worth:||$14.2 Billion||$45 Billion|
|Diet:||Russian 20-somethings||Cheeseburgers & Cherry Cokes|
|Contradictory Behavior:||Socialist streak||closet CDS lover|
So pick a side, the Hungarian macro titan or Mr. Market's best friend? Or at the very least, who'd you rather emulate?
And if you had their skills and money...
|Miranda Kerr||Alessandra Ambrosio|
I'll take Georgie for skill, since coming out of retirement the man's been raking in a lot for himself and Quantum, not bad an 80 year old.
And then I choose Alessandra, for sharing to the world Brazil's hatred of normal-sized bikinis and because we'd all kill to know if she can backup that f-me look.
How bout you?