To explain what’s wrong with US pensions

The more money Ross appeared to be worth, the more money investors seemed willing to give him. “Really, for us, it was a bet on him, ” says Sam Green, who helped put $300 million into Ross’ funds on behalf of the Oregon Public Employees Retirement Fund, citing his personal wealth as one factor. “I don’t know of any better indicator of future success than having been successful in the past.”

3 thoughts on “To explain what’s wrong with US pensions”

  1. “Past performance is no guide to future success”
    “Share prices may go down as well as up”
    “Your home may be at risk if you do not keep up repayments”

  2. Chris,
    Past performance is actually a rather good predictor of future performance. If I had to decide whether to invest with a person, and I could only see one statistic about them, past performance would be the one. This is amply demonstrated in the world of sports, where the same individuals keep winning in their domain.

    Having said that, Wilbur Ross is the underpants gnome of investing: it looks like money is being made, but you have no idea how. Compare with e.g. Warren Buffett, whose strategy is transparent.

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