Why are the rich so stupid?
You can not help but be interested in the news makers of hedge fund gurus of the likes of Bill Ackman and Carl Icahn who hedge using other rich peoples money in their funds. Now these two are a little different than the many other hedge funds out there who consistently loose to the market versus the S&P. With an industry that has the rich investing in them to the tune of $2.5 trillion and loosing, why are the rich so stupid?
Now it's only the rich due to IRS guidelines which require you to have net worth of $1,000,000 million and yearly income of over $200,00. That along with most of these self styled "Hedge Fund Guru's" only taking your money from you with their own minimum investment requirements which is most often not less than one million dollars (I asked One to check), sometimes even up to $25 million, makes for sure you are rich and stupid to boot. Hedge funds generally charge a 2% levy per year and IF they are profitable they take 20% of that profit for themselves!
Are Hedge Funds that good that they like are earning phenomenal returns, the rich are rich because they are smart right? I don't get it please explain.
I am long JCP.