I am not sure if 'hedge fund' is the correct term. Think of Buffett. He owns shares in a bunch of companies and Berkshire Hathaway is the umbrella holding company for them. I guess it's more of an asset management company than a hedge fun.
My point is, you have a bunch of personal trading accounts that deal in FX (Or maybe other markets as well). Then you register as an entity (like Buffet did with Berkshire Hathaway) and sell shares of your company.. For example, if your total assets are 10K, you own 10K shares each valued at $1.00. If that account grows to 100K, each share is now $10. So, let's say when the account is still 10K, you offer to sell each share at $10 (because of the money making potential of your company) and manage to sell 1000 shares and recuperate your initial 10K that way. Now you have 9K worth of shares and your investors have 1K worth of shares. When you reach 100K in assets, you have 90K and your investors' shares have paid them handsomely too.
Question is, is it possible to do something like this? What is the proper term for this?
If Buffett could do it, why can't others? I do understand that he owned physical assets worth buying shares in but if at end of the year, both Buffetts and your efforts have paid off the same, than it should all be good. Right?
My point is, you have a bunch of personal trading accounts that deal in FX (Or maybe other markets as well). Then you register as an entity (like Buffet did with Berkshire Hathaway) and sell shares of your company.. For example, if your total assets are 10K, you own 10K shares each valued at $1.00. If that account grows to 100K, each share is now $10. So, let's say when the account is still 10K, you offer to sell each share at $10 (because of the money making potential of your company) and manage to sell 1000 shares and recuperate your initial 10K that way. Now you have 9K worth of shares and your investors have 1K worth of shares. When you reach 100K in assets, you have 90K and your investors' shares have paid them handsomely too.
Question is, is it possible to do something like this? What is the proper term for this?
If Buffett could do it, why can't others? I do understand that he owned physical assets worth buying shares in but if at end of the year, both Buffetts and your efforts have paid off the same, than it should all be good. Right?