Price war for Warren Buffett
“There are just way too many assets chasing the sales,” says a man as wise—in this particular instance—as the Sage of Omaha himself. Ultra-low interest rates, high price/earnings ratios and credit markets fitted out with red carpets share the blame. No profits? No problem.
“The hedge fund isn’t an asset class. It is a compensation scheme.” It became an over-compensation scheme. Tracing the rise and ongoing pratfall of the modern-day hedge fund.
Bullishness dominated, though they did not quite monopolize, the day’s proceedings. A vision of 20 years on the investment equivalent of an exercise bicycle.
“Indexing doesn’t need any help. It is growing at an astonishing rate and, for someone who never intended to build a colossus, a kind of frightening rate.”
Where in life can a sub-par performer achieve average results with a light tap on a computer key? Investment indexation, attested a preeminent active investor, is “incredible.”
The text of your editor’s early-morning remarks: “The Age of Trump will go down as the Age of the Consequences of Radical Monetary Policy.”
A long and a short for a Trump Market where “what has worked so well in investing will fade or stop working.”
The word “gold” went unmentioned at the Plaza, except in the context of an unassailable rule for living: “Never stand in line to buy an asset.”
Yes, buying low and selling high is hard to do, but there are ways. “Trailing three-year performance is very predictive.”
To close the era of extraordinary monetary policy, the Federal Reserve must open its mind. “There is no wealth effect, only a wealth illusion.”
A pair of stocks in a country poised on the brink of capitalist emergence.
Other investment ideas presented by our speakers at the Spring 2017 Grant’s conference.
While the S&P 500 is near an all-time high, the much-vaunted wealth effect does not seem to be working its magic.
Undoing Extraordinary Monetary Policy
Remarks of Peter R. Fisher
Tuck School of Business at Dartmouth
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Grant’s Interest Rate Observer
Spring 2017 Conference
New York, New York
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March 15, 2017
