Fooled by games of different scales

Everyone loves citing Warren Buffett (me too). He, of course, has a lot to offer for business life, but his fund doesn’t have alpha anymore:

Then how Berkshire makes excess over S&P500 for 50+ years?

Because of compound interest. No wonder that biography of Buffett is called “The snowball” (The Snowball: Warren Buffett and the Business of Life, by Alice Schroeder, recommend it), because compound interest (or time based returns) is working like snowball.

The Snowball

“Imagine that you make 20% per...