S&P 500 Index generated an average annual compounded return of only 9.2% during the same 10-year period. S&P 500 Index lost 10.8% in 1957, so Buffett’s investors actually thrilled to beat the market by 20.1 percentage points in 1957.īetween 19 Warren Buffett’s hedge fund returned 23.5% annually after deducting Warren Buffett’s 5.5 percentage point annual fees.
That year Buffett’s hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as “fees”. His investors didn’t mind that he underperformed the market in 1958 because he beat the market by a large margin in 1957. That would have been 9.35% in hedge fund “fees”.Īctually Warren Buffett failed to beat the S&P 500 Index in 1958, returned only 40.9% and pocketed 8.7 percentage of it as “fees”. secretly invested like a closet index fund), Warren Buffett would have pocketed a quarter of the 37.4% excess return. If Warren Buffett’s hedge fund didn’t generate any outperformance (i.e. Warren Buffett took 25% of all returns in excess of 6 percent.įor example S&P 500 Index returned 43.4% in 1958. Back then they weren’t called hedge funds, they were called “partnerships”. He launched his hedge fund in 1956 with $105,100 in seed capital. Warren Buffett never mentions this but he is one of the first hedge fund managers who unlocked the secrets of successful stock market investing. However, the public remained in favor of using the term “open source” and this is why I am calling it that in the list you are about to see.
Later on, Stallman refused to embrace the term, finally settling on GNU for the name of his movement and following licensing that is in very wide use today. “Open Software” as a term emerged after the formation of the Free Software movement by Richard Stallman (who is an extremely important figure in this area) as a replacement for “free” due to its political implications. Early forums, public networks and means of textual communication (IRC, Gopher) became the place where that occurred and some of the staples of modern computing such as BSD and Linux were discussed and contributed to the community there.
When the internet emerged, sharing code for free became common even though people had no choice at times due to the early programming languages not being able to be packed in a single executable file. Later on, with the emergence of computers that could be programmed by text code, IBM set a very early example by releasing the source code of their operating systems in the 50s and 60s.
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