Questionerconcentrating in those few and rare wonderful opportunities do you believe that the zero 625 market saris the zero 625 high-water mark fee structure that the buffett partnership popularized is the fare structure for both limited partners and the manager themselves and could you also touch upon what fee structure you employed there your partnership thank you
Ted Weschlerwell I get copied the Buffett formula more or less and I do think it's fair nothing it's still fair now I'm looking at morning issue still use you know I think it is fair and I wish it was more common I basically don't like it the business is scraping it off the top if you're advising other people you ought to be pretty rich pretty similar why would I think a lot of advice for somebody who couldn't himself get pretty rich pretty soon and if you're pretty rich why
Questionersoon and if you're pretty rich why shouldn't you put your money alongside your investors and go up and down with your investors and go up and down with them on a bad stretch why should just use great money off the top one they're going down not so I like the buffett system
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Questionerspeaking of Berkshire the company's Vice Chair Charlie Munger was speaking to shareholders of The Daily Journal today
CharlieLimburger came up we had an easier world and you people are facing from this point forward and I don't think you're gonna get the kind of results we got by just doing what we did that's not to say that what we did and the attitudes that we had our obsolete or won't be useful it's just that their prospects are worse and they've said this before Mike the investment management business it's harder now than it was then size also makes it hard to keep doing well for them just the markets in general is so
Questionerthem just the markets in general is so much more efficient move that much faster there the information flow doesn't get clogged up along the way from the best inform to the least inform the way it used to and they may not have kind words for the one in 22 and 20 management model where Munger again singled out Mohnish Pabrai as somebody who didn't take am an asset management fee for ten years until he got back to his high watermark as saying you know this is how Warren did it back in the day and going back to whether you can emulate that strategy now he said you know why should you pay somebody who's just you know you're paying them to invest your money you're paying them on the profits but don't pay them to sit there so repeating a criticism of the money without a doubt look if you broke your Hathaway itself doesn't take a fee you just own the shares
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Questionerwhen actually I have a question for mr. Kaufman and like
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Questionereverybody wants to stay off the top that's what everybody check everyone that's what is nature
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