There’s More to Warren Buffett’s Game Than Just Picking Great Stocks
We assumed the hypothetical Berkshire hedge fund—let’s call it Berkaway LP—charged a management fee of 2% of assets, plus a performance fee that took 20% of any gains above 6% (or, in one iteration, 8%).
Over a period when the S&P 500 compounded at 10.2% annually and Berkshire at 19.8% annually, Berkaway would have returned somewhere between 13.6% and 15.9% annually.