Why invest in Buffet-like firms?

Mansa's picture
Rank: Monkey | 62

Probably not the best question asked on this forum, but nevertheless one I just can't wrap my head around. I'm constantly reading about fund managers who admit to copying Warren Buffet's investing approach and fee structure, and yet end up doing very well. How does that work? Why don't the investors just give their funds to Warren himself (Berkshire)? What exactly am I missing here?

Comments (3)

Aug 5, 2019

Usually the funds are taking his approach but applying it to something they specialize in.

Or it's a smaller fund which means better irr purely because the larger the fund the harder it is to deliver abnormal returns unless your name is SQR.

Aug 6, 2019

Ah... That makes sense. Thank you.

Aug 6, 2019