Zhao Danyang
Zhao Danyang, a hedge fund manager in Hong Kong, paid $2.11 million for a lunch with Warren Buffett. For that big price tag, he got to bring seven of his close friends and family. It’s all for a good cause–proceeds go to the Glide Foundation, which benefits homeless and poor people in San Francisco. But $2.11 million? I’m glad someone is doing well in this economy. Evidently, Zhao really is: his fund has had a 600% return over six years, which is much better than what my portfolio has done in the same period. Hell, that’s better than what Buffett’s portfolio has done.
From the article, Buffett’s strategy of value investing helped Zhao turn his portfolio around. He started his own hedge fund in 2000, and the fact that he’s still going strong shows that he must be doing something right. It sounds like Zhao asked some good questions during the lunch. They talked about investing, as well as philanthropy. I always like people who take the long term approach. Buffett may be down right now, but he knows what he’s talking about. It’s $2.11 million, and depending on future returns, it could be money well spent.
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I agree with everything you said. About #1…I think...
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Warren Buffet is rich and all, but his investing philosophy is pretty simple – Invest in what you know. If you look at his investments, you will see stuff like bubble gum, pop soda, and railroads. K-I-S-S.
I think his investing philosophy gets pretty complex at the higher levels, and I imagine that his whole thing with Ben Graham gets pretty number-intensive. But I don’t have $2 million to find out (and my portfolio’s performance has been atrocious recently).
Pricing and valuation models can get complex, but the philosophy stays constant…philosophically speaking, it should stay constant anyways. It is how you apply it that will get complex.
I agree with the philosophy. I think it’s the lack of numerical analysis that gets me tripped up though. If one is not looking at pricing, valuation models, and balance sheets, one has nothing really to go on other than emotion. So maybe I don’t know what I think I know without the numbers.