Madoff as outlier
A thought on Madoff: I’ve heard a lot of people make the claim that his malfeasance should have been discovered because of his unrealistic returns. But hasn’t Warren Buffett also enjoyed long strings of years when his portfolio made year after year of double digit returns? I’m aware Berkshire is public, so you just have to look up the components he owns to know it’s all legit, but my guess is Madoff’s fund’s “performance” didn’t look all that implausible, given the multi-year success we occasionally see from Wall Street’s brighter lights (Peter Lynch comes to mind as well). Obviously what the SEC should have done was to require Madoff to show in detail exactly how such returns were earned. Apparently they didn’t.