My recent post on Warren Buffett generated some very interesting comments that qualified and corrected my initial remarks. One reader sent in along the following analysis, which he agreed to let me post:
Here are some data that you can use to compare Buffett’s returns to the private equity universe. These data come from S-1s filed by these two private equity groups in connection with their IPOs. As I mentioned in my post, given Buffett’s recent investing style – (i) he buys entire companies rather than passive minority stakes, (ii) he buys in negotiated transactions rather than at-the-market and (iii) he uses substantial leverage from the float on his reinsurance business – he looks more like KKR than Fidelity. How do his returns compare to the returns from these two private equity players?
- Blackstone: gross IRRs since
inception  -- 30.7% [see SEC filing]
- Apollo: “We have consistently produced attractive investment returns for our investors, with our private equity funds generating a 40% gross IRR … from inception  through December 31, 2007" [see SEC filing]