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David Snowball's January Commentary Is Now Available
“But I do think that we underestimate, to our great loss, the extent to which the Buffetts, the Druckenmillers, the Millers, the Mungers, are all outliers more than two standard deviations removed, who have going on in their heads processes which are not easily replicated by a group of analysts and an investment committee sitting around a table.”
David's commentary about Ron Baron and his fund fees was particularly good. I read the eye-opening NY Times article with quite a lot of disgust myself. I highly recommend it at your leisure.
@willmatt72 Yes. I found this excerpt particularly amazing (Talk about a conflict of interest!):
"At the Baron fund family, the fee oversight is complicated by the fact that Mr. Baron, the largest shareholder in the investment company and the manager of its largest fund, has a financial incentive to keep fees high. In addition to his salary and bonus, tied to performance among other measures, he gets a reward based on a percentage of the fees his funds bring in, according to regulatory filings."!
That interview was highlighted by Bill Fleckenstein (on his subscription site) a couple weeks ago and I linked it here. But unlike “You Know Who” I’m not upset that you chose to link it too.
Ed is spot on. What I really “dig” as a former English teacher is his wonderfully constructed sentence. My kids in class would sometimes flag something like that as a “run on sentence” - and I’d have to explain to them that length in itself does not constitute a run on. It’s the structure that makes the difference. A really lovely sentence IMHO - and on the mark as well.
Comments
“But I do think that we underestimate, to our great loss, the extent to which the Buffetts, the Druckenmillers, the Millers, the Mungers, are all outliers more than two standard deviations removed, who have going on in their heads processes which are not easily replicated by a group of analysts and an investment committee sitting around a table.”
If missed, this was a recent interview with S. Druckenmiller:
https://msn.com/en-us/money/markets/watch-cnbcs-full-interview-with-legendary-investor-stanley-druckenmiller/vi-BBGHG6I?ocid=se
"At the Baron fund family, the fee oversight is complicated by the fact that Mr. Baron, the largest shareholder in the investment company and the manager of its largest fund, has a financial incentive to keep fees high. In addition to his salary and bonus, tied to performance among other measures, he gets a reward based on a percentage of the fees his funds bring in, according to regulatory filings."!
https://www.mutualfundobserver.com/discuss/discussion/37722/why-are-mutual-fund-fees-so-high-this-billionaire-knows-ron-baron#latest
That interview was highlighted by Bill Fleckenstein (on his subscription site) a couple weeks ago and I linked it here. But unlike “You Know Who” I’m not upset that you chose to link it too.
Ed is spot on. What I really “dig” as a former English teacher is his wonderfully constructed sentence. My kids in class would sometimes flag something like that as a “run on sentence” - and I’d have to explain to them that length in itself does not constitute a run on. It’s the structure that makes the difference. A really lovely sentence IMHO - and on the mark as well.