Warren Buffet, in his annual shareholder letter, discusses money management fees, which the NY Times discusses. The NY Times article begins as follows:
Poof: $100 billion disappeared.
That’s the figure that Warren E. Buffett recently calculated that pension funds, endowments and wealthy individuals have lost over the last decade to hedge funds and other money managers that charge sky-high fees.
“I believe my calculation of the aggregate shortfall is conservative,” Mr. Buffett wrote in his annual letter, released on Saturday to the shareholders of his conglomerate, Berkshire Hathaway.
The letter, which ricocheted around Wall Street to the consternation of some and the applause of others, was Mr. Buffett’s most damning assessment of the hedge fund industry to date, and it came amid a growing debate about whether professional money managers are capable of outperforming the stock market on even a semiregular basis.
See article at: Buffett Asks Big Money: Why Pay High Fees? – The New York Times
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.