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Investment Partnership

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R

rlinthicum

Guest
What is the name of your state? Pennsylvania

I am interested in starting an investment partnership, fund, unit trust or some type of vehicle to invest in value stocks. The great investor, Warren Buffett, as I understand it started out back in the 50's or 60's by forming a limited partnership in which he was the general partner and made all investment decisions on behalf of the partnership. The limited partners got to keep the first 6% of the returns without paying Buffett a fee but he got to keep 25% of all returns above the first 6%. I presume with all of today's disclosure laws and whatnot that nothing remotely similar to this would be legal today. Is there any type of vehicle that can be set up to do something like this relatively easily and inexpensively, short of having the capital of a brokerage firm to prepare prospectuses, filings, etc? Would I be able to have a brokerage firm sell shares, units, etc (I don't know a handful of wealthy people that would be the extent of my investors)? Thank you!
 


vrzirn

Senior Member
In today's skittish financial climate I do not think the ordinary, cautious investor would be willing to risk capital unless you could provide some outstanding credentials and a superb track record.
I really suggest you work hard, save your money and invest in the S&P 500. If you really need to know the answer to your question, speak to the SEC and an attorney familiar with LLC's.
Join a small investment club and get some more experience.Someday, perhaps. Right now you are not the next WB.
 

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