Correct. Nowhere has he ever said that...
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Whether Buffett said that or not I don't know or care as I don't salivate on every word he says like some of his hero worshipers on here.
But largely that's true and as they typically don't compound but pay out returns each year then the pool of capital typically stays the same.
It also depends on the liquidity of the market you are in and how deep the pockets are of the trader or the investor they are trading for.
There have been many examples of positions in the billions of dollars and Soros taking on Stirling back in the day is a prime example.
I supported a trader when I first started out who's position on any given day could be up to 8 yards.
He was trading the entire delta position for a large European Bank and a one tick move at times could be $1M swing in P&L.
On June 23, 1999, in Business Week, Buffett said:
“If I was running $1 million today, or $10 million for that matter, I’d be fully invested. Anyone who says that size does not hurt investment performance is selling. The highest rates of return I’ve ever achieved were in the 1950s. I killed the Dow. You ought to see the numbers. But I was investing peanuts then. It’s a huge structural advantage not to have a lot of money. I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that.”
In 1999, at Berkshire’s annual shareholders meeting, when asked if there were opportunities in the stock market for the small investor, Buffett remarked:
“I think, working with a very small sum, that there is an opportunity to earn very high returns. But that advantage disappears very rapidly as the money compounds. Because I, you know, from a million to 10 million, I would say it would fall off dramatically, in terms of the expectable rate.Because there are little — you find very small things that, you know, you can make — you are almost certain to make high returns on. But you don’t find very big things in that category today.”
I'm not trying to convince you to do something else, I never have in fact repeatedly I have said its not for everyone.
All I have tried to point out that there is a much bigger world out there and people make money in different ways and can be as profitable of more profitable than others.
You constantly refuse to believe the returns that are made by proprietary traders.
But I don't really care what you believe, its just displays a small mind.
There is zero question that working with small sums is a massive massive advantage. Nobody is saying otherwise.
Why are you referring to investment managers when I am talking about proprietary trading?
The key perhaps is in the first word... investment... :rolleyes:
Again, it just proves you don't understand, despite your flailing claims.
So, you are asking a forum why Buffett isn't doing something? :laugh:
Surely that's a question for Buffett himself.
But here goes, as I would have thought for someone who has studied the great Sage as much as you have, I would have thought some of the answers were pretty obvious.
Buffett doesn't get involved in things he doesn't understand, which is smart. Its why he took so long to get involved in China and by the time he did it was too late and he I'm sure regrets that move, but you probably know more about that than I would.
Buffett has said he's not into the macro. It's a pretty fundamental part of trading.
Buffett is an investor looking to at least five year horizon & beyond & is not into short term gains, that's exactly the opposite of most traders outlook.
In summary its not a good fit.
But again, that's a question for him.
Hey, but as you said it's a big wide world out there and amazingly a lot of it doesn't involve Buffett.
Why isn't he involved in credit markets?
Why isn't he involved the bond market? etc etc
He could be an investor in any of those things but as far as I'm aware doesn't as he sticks to his knitting.