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fundamental shorting

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Werner_1
Super Contributor
you cannot compare someone in USA and someone in RSA without converting to mutual ground, i would recommend you take buffett's USD starting value and ending value, take the starting date and get the USD-ZAR exchange, then take his value today and the USD-ZAR exchange today and get the compound growth of his portfolio in ZAR terms and it will be way more than 20%. then you can compare...
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john_1
Super Contributor
werner do you convert your portfolio gains into dollars? The use of the percentage as a measure IS the standard you are looking for..10% return of any amount, in any currency, is still a 10% return.
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Werner_1
Super Contributor
buying power of time is not the same, thats what really counts. same as money market rates here is higher than in USA but inflation here is also higher so ones end result could be the same even though % is different.
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Not applicable
John, give it up, you're on the losing side of this argument. If you give me 100 billion Zim $, and I give you back 200 billion Zim $ after 1 year, have you made a 100% profit? No, you gave me a useful amount of cash, but, by the time I give you the 200bn, it is worth less than the paper it's printed on, because of the high inflation there. The prophets of Buffett are quite correct on this point. You'll have to try a different strategy against them, like character assasination.
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Werner_1
Super Contributor
well all i have to say is both buffett and allan gray did really well over time, but their strategies of buying quality companies for long term is quite similar actually.
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john_1
Super Contributor
LOL.. no I would have made a 100% return..the debate as to the time value and inflation is a seperate issue..one not to be overlooked but still seperate... the truth is buffoon is a hilbilly from the back waters who got lucky.. The fact that he has never invested outside of the states until recently is just a demonstration of his hillbilly approach.
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john_1
Super Contributor
NO alan does not pretend to not sell.
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Amar
Contributor
Then I guess all zimbabweans are better investors than Allan Gray and Warren Buffet.
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topgun
Super Contributor
If a simplistic approach is taken, not adjusting for the time value of money or opportunity costs, that would be "correct", but also entirely meaningless. Pension funds generally aim for a 5% real annual return over time. As for Buffett not investing outside of the US directly until relatively recently, there was no real imperative to do so. Stick to what you know best? I certainly won't call that a hillbilly approach...how much can essentially 2 people pretend to know and understand?
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louisg
Super Contributor
Buy a few great companies, then you can sit on your a s s. - Munger
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Werner_1
Super Contributor
i agree, another point is that USA has such a diverse market that Buffett and Munger really didnt have to look anywhere else. There are some wonderful businesses with wonderful leaders in USA.
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