“Druck is the greatest money manager of all time, I believe. Compounding at 30% for over 30 years is in itself remarkable..doing it in size, managing billions is what makes it truly unique.
That said, as he has stated himself many times in recent years..he has gotten too cautious and too bearish with age. At least he is aware of his own biases. You only have to get rich once as they say…”
It’s a reader comment on this article Stanley Druckenmiller is a trading genius, and that’s why we should stop listening to him.
30% per year for 30 years…I’m not sure that is correct, but whatever the actual numbers, Druckenmiller has had a reputation for speculating. The point is how do you get rich? When you allocate your capital, either to managers or by doing it yourself, it’s unlikely you’ll get rich ‘once’. Instead, you need to get rich little by little over time. In other words, compounding works. As for Druckenmiller, as with many hedge fund managers, they take most of the returns themselves. And whilst there will always be hedge fund managers who show fantastic results, it’s not all of them. In fact far from it. The chances are you’ll make less than an index over time.
If you sell your company, win the lottery…you only have to get rich once, (and then your problem is not losing it) but for most, it’s grinding out the returns over time. That means you need to get your investments right now.