•Are people losing money via FAKE regulations?
The screenshot before the last one claims, "An index fund can replicate their results." (which means the results of Warren Buffett's teammates). As the guy who has claimed this is a regulated-certified professional in Canada, it is worth spending some time investigating that.
On page 129 of the document "The Complete Financial History of Berkshire Hathaway By Adam Mead 🔗
https://theoraclesclassroom.com/wp-content/uploads/2021/04/BerkshireHathwayAudiobookCompanion.pdf" it shows the financial numbers for each 5 years from 1964 to 1989: Total assets – (minus) Shareholders’ equity = Liabilities (which means
leverage).
Let's calculate the % of
leverage to Total assets for just 1 year
(1964: to see the power of leverage*, hypothetically, as I haven'T taken the leverage money of 1965–1968 into account—AT ALL. Note: in 1989, the value of the leverage exceeds Shareholders’ equity.) then ÷ the number of % by 5 (years) and ÷ the result by 12 (months).
In short, extract 0.37% from the result because it is the required % of monthly leverage to Shareholders’ equity/Total equity (Balance sheet) of 1964–1968 • the YoY percentage changes for them are
NOT the same as the price changes of
STOCKS owned by all shareholders (outstanding shares in a balance sheet) • for the outperformance of compound annual growth rate (CAGR**), which is 0.37% monthly contribution with compounding it only every 6 months (semiannually) (0.33% for compounding monthly) of 11% average annual return (slightly lower than the average return of low-cost S&P 500 index*** funds that Buffett himself has informed people to invest in this kind of funds)—as you can see in the widely used calculation in the
last screenshot and CAGR calculation in a comment below it.
* “Buffett’s Alpha," which won the (Benjamin) Graham and Dodd Award for best article in 2018, shows that the outperformance of Buffett's Berkshire Hathaway holdings was because of the power of low-cost leverage.
https://rpc.cfainstitute.org/en/research/multimedia/2020/buffetts-alpha-interview-with-andrea-frazzini
** Google it for "CAGR calculator". Berkshire Hathaway uses the phrase "Compounded Annual Gain".
*** Each 30 years from 2022–1933
Plus, reducing sales of high-expense (high-exploit to uninformed people) retirement products ↓
The Case Against Active Management of กองทุนประกันสังคม (and any other pension schemes)
On page 129 of the document "The Complete Financial History of Berkshire Hathaway By Adam Mead 🔗https://theoraclesclassroom.com/wp-content/uploads/2021/04/BerkshireHathwayAudiobookCompanion.pdf" it shows the financial numbers for each 5 years from 1964 to 1989: Total assets – (minus) Shareholders’ equity = Liabilities (which means leverage).
In short, extract 0.37% from the result because it is the required % of monthly leverage to Shareholders’ equity/Total equity (Balance sheet) of 1964–1968 • the YoY percentage changes for them are NOT the same as the price changes of STOCKS owned by all shareholders (outstanding shares in a balance sheet) • for the outperformance of compound annual growth rate (CAGR**), which is 0.37% monthly contribution with compounding it only every 6 months (semiannually) (0.33% for compounding monthly) of 11% average annual return (slightly lower than the average return of low-cost S&P 500 index*** funds that Buffett himself has informed people to invest in this kind of funds)—as you can see in the widely used calculation in the last screenshot and CAGR calculation in a comment below it.
* “Buffett’s Alpha," which won the (Benjamin) Graham and Dodd Award for best article in 2018, shows that the outperformance of Buffett's Berkshire Hathaway holdings was because of the power of low-cost leverage.
https://rpc.cfainstitute.org/en/research/multimedia/2020/buffetts-alpha-interview-with-andrea-frazzini
** Google it for "CAGR calculator". Berkshire Hathaway uses the phrase "Compounded Annual Gain".
*** Each 30 years from 2022–1933