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Many hedge fund managers expense so-called “2/20”, meaning that whatever happens with the investments, they get 2% of the assets plus 20% of any profits.

Even though they’d underperform the market, such system would incentivize them for the effort.

“Thanks!”
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Buffett, aged 26, started Buffett Associates (later to be consolidated to Buffett Partnership) with initial capital of $105,100.

In total he raised $105,000 in capital and put in $100 himself. As he put it: “there& #39;s no prize for guessing who put in the $100”.
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The Buffett Partnership quickly left all major indices in the dust. Its overperformance was staggering despite the fund manager’s relatively young age.

You can imagine what kind of an impact this had on Buffett’s wealth.
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At inception in 1956, Buffett had put in $100.

In 1961, Warren and his wife Susie already had a net worth of $1.025M in the partnership. That’s roughly $200k per year ($1.5M per year in today’s dollars) for the Buffetts in 1956-1961.

But that was only the start.
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The partnership ended up growing from $105,100 in 1956 to $7.2M in 1961, only to exceed $100M in size by 1968.

After finding no more attractive buying opportunities in 1969, Buffett liquidated the partnership and started to focus on a company called Berkshire Hathaway.
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Highly recommend reading the amazing partnership letters (152p) from http://csinvesting.org/wp-content/uploads/2012/05/complete_buffett_partnership_letters-1957-70_in-sections.pdf

Thank">https://csinvesting.org/wp-conten... you for making it this far with me https://abs.twimg.com/emoji/v2/... draggable="false" alt="😊" title="Lächelndes Gesicht mit lächelnden Augen" aria-label="Emoji: Lächelndes Gesicht mit lächelnden Augen"> Remember to enjoy the meeting today from https://finance.yahoo.com/brklivestream/ 

Have">https://finance.yahoo.com/brklivest... a nice weekend!
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