Warren Buffett Croupier’s take revisited

Conventional wisdom holds that adding alternative investments, such as hedge funds and private equity, to a portfolio boosts returns. This may be true for a lucky few, but it can’t be so in aggregate. That’s the message Warren Buffett delivered in his latest letter to Berkshire Hathaway shareholders. The numerous peddlers of alternative investments will have trouble refuting the Sage of Omaha’s reasoning. Buffett starts with the premise, which he calls a «fundamental truth», that the most «owne...