STREET DOGS
MICHEL PIREU: Warren Buffett on fund managers
From Warren Buffett’s 2017 letter to Berkshire Hathaway shareholders: When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients. [Therefore] my regular recommendation is that both large and small investors should stick with low-cost index funds. I believe, however, that none of the mega-rich individuals, institutions or pension funds has followed that advice when I’ve given it to them. Instead, they politely thank me for my thoughts and depart to listen to the siren song of a high-fee manager or, in the case of many institutions, to seek out another breed of hyper-helper called a consultant. The wealthy are accustomed to feeling that it is their lot in life to get the best food, schooling, entertainment, housing, plastic surgery, sports ticket, you name it. Their money, they feel, should buy them something superior compared to what the masses receive. In many aspects of life, indeed, wealth ...
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