Marketing securities is hard—you must cut through the clutter of messages trying to push our buttons of emotion. This one is called the “vanity” button. Sure, some guy will design a portfolio just for you but you are no different than everyone else. Everyone wants the “largest nest egg with little or no risk.” As Warren Buffett says, Rule 1: Don’t lose money, Rule 2: Dido. Buffett’s formula for becoming wealthy is simple: Buy a low-cost market index fund and do nothing else. When you pay more … you lose.
Everest Capital, a hedge fund firm that counted George Soros and Nelson Peltz as early backers, is closing six of its seven remaining hedge funds. Hedge funds have lost money.