Buffett trounced the last challenger, hands down! It doesn't surprise me that another hedge fund would want to do it again.
The nature of hedge funds is to take high risk. So, another hedge fund manager, feeling their oats, wants to take another risky bet. Nothing surprising here. That is just the nature of the individuals who run these funds.
Some hedge funds would argue that they mitigate risk by hedging. Does anyone remember the last downturn when hedge products (derivatives) fell apart under duress? Can anyone say counter party risk?!
The bottom line comes from a key subject from the bible of security analysis - "Security Analysis". Are you a speculator or an investor. Buffett is clearly an investor.
Unfortunately, the often boring nature of investment doesn't have the sexy appeal of hedge fund excitement. If you want excitement, go to a casino. If you want returns, invest. It is smart not to confuse the two!
