Famed value investor Warren Buffett says that his mentor possibly created the first example of what is now known as a Hedge Fund.
What Are Hedge Funds?
A Hedge Fund is an investment fund with certain unique characteristics.
For one thing, Hedge Funds are not restricted to just stocks and bonds like mutual funds. A hedge fund can also invest in real estate, derivatives, currencies etc. Hedge Funds are also open only to investors who meet certain net worth, or annual income, requirements.
Lastly, Hedge Funds also often employ leverage and a performance-based fee structure.
Benjamin Graham
Warren Buffett says that while Alfred Winslow Jones is widely credited with creating the first Hedge Fund in the late 1940s, his mentor — Benjamin Graham — possibly created the first example of what is now known as a Hedge Fund two decades earlier.
Buffett about Graham
Son named after Graham
"Absolutely" valid in 2018
In the 2018 Balance of Power interview for Bloomberg Markets, Warren Buffett says yet again:
"The principles [of investing] haven't changed at all... It's exactly what Ben Graham wrote in 1949."
Submitted by GrahamValue. Created on Wednesday 11th December 2019. Updated on Sunday 26th December 2021.