Ray Dalio leaves Bridgewater Associates and rumors about Warren Buffett’s company surface

“It’s a very sad day,” Dalio commented on Twitter, adding that “I didn’t want you to stay until death, but I hope to continue to be a point of reference.”

Dalio founded this hedge fund in 1973 and has managed to grow it into a giant, with a volume of assets under management worth 150,000 million dollars. The firm currently has 1,300 employees. What has made Dalio a multimillionaire, with an estimated wealth of close to 20,000 million dollars.

Free investment funds (known in jargon as hedge funds) are investment vehicles that have maximum freedom. They can concentrate their portfolio in a handful of companies, or take on a lot of debt, or buy assets with a lot of risk. These are products that are only available to professional investors. On the other hand, in conventional investment funds (known in Europe as Ucits funds), there are very strict rules on the degree of concentration or indebtedness that they can have. In Spain his figure was known for having made many bets on the fall of certain listed companies (the calls, short positions).

Ray Dalio is well known for having designed his own investment strategy, the so-called “all weather portfolio”, the purpose of which iss create a permanent and stable portfolio over time. His strategy is based on the premise that, since the future is unpredictable, the markets have four clear phases (growth, recession, inflation, deflation) to each of which they assign a certain type of asset.

Fear for Berkshire Hathaway

Something is moving too Berkshire Hathaway the most expensive investment company on Wall Street founded by Warren Buffett and that could see a major change in its leadership.

Greg Abel, CEO of Berkshire Energy and the most likely candidate to lead the company in the post-Buffett era, bought Berkshire A shares for $63 million, greatly increasing his voting rights on the board of directors.

Before the purchases, Abel only owned 5 A shares and 2,000 B shares (non-voting), a holding that has been disputed in the past by shareholders who prefer a CEO with a high shareholding like Buffett’s.

Rumors of an accelerated timetable for a change in leadership increased last August, when Berkshire Energy bought back 1% of Abel’s shares for $870 million, leaving him with ample cash to buy new Berskhire A shares.

After the operation, James Shanahan, an analyst at Edward Jones & Co, commented that the sale of his shares “suggests that he will buy shares of Berkshire”. He doesn’t own many and could use the profits to have more weight in the succession game.’

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Ray Dalio leaves Bridgewater Associates and rumors about Warren Buffett’s company surface