management that we weremaking a mistake not beingin the asset managementbusiness. The firm, being abrokerage house, wasstrongly opposed to whatthey considered competingwith their client base. Everybrokerage firm at the timewas largely in this business.Once Salomon Brothers andsome others announcedtheir launching of an assetmanagement business, Gold-man leadership asked me toestablish one of their own. Ileft research at that timeand became Chairman andCEO of Goldman SachsAsset Management.This was the beginning of my exit from the firm. Theywanted to capture as manyassets as possible becausethey wanted to build thebusiness to a scale thatwould be relevant to a firmlike Goldman Sachs. On theother hand, my motivationwas the proper perform-ance of the assets in mycontrol. I realized after a
short time I didn‘t want to
be on the road every week,introducing a new productand sourcing new funds. Iwanted to spend my timevisiting companies and find-ing new mispriced stocks. Iwanted to manage money insuch a way that my interests
and the clients‘ interests
were 100% aligned. I didnot want to build a big busi-ness like Goldman Sachswanted me to. I have thehighest respect for Gold-
man, but it was the firm‘s
reluctance to go into thehedge fund business that ledto me start Omega.
Page 3Issue XIII
My last day at Goldman wasNovember 30
, 1991 and Istarted Omega the verynext day. Over the past
twenty years I‘ve been rais-
ing the money, hiring thepeople, running the moneyand setting up the infra-
structure. It‘s kind of been
stop. I‘m getting olderbut I‘m still handling it okay.
Did anyone or anyinvesting class at ColumbiaBusiness School have a par-ticularly significant influenceon you?
Yes, there was oneperson who had a profoundinfluence on me. I evenhave a letter he sent me in1977 hanging on my wall.His name was Roger
Murray, Benjamin Graham‘s
successor as the professorof security analysis at Co-lumbia and, in fact, a subse-quent editor of the book
. MarioGabelli, a very dear friend of mine, also studied underhim and would probably saythe same thing. As ourvalue investing professor, heshowed a great deal of ex-citement for the subjectmatter. I would also sayWarren Buffett influenced
me tremendously. I‘m an
expert in his writings andhis views. Finally, Grahamand Dodd influenced me aswell. Their book
is sitting right thereon my shelf.
How has your ap-proach to investing changed
(Continued on page 4)
“… there was one
person who had a profound influenceon me. I even havea letter he sent mein 1977 hanging onmy wall. His namewas Roger Murray,
successor as the pro-fessor of security analysis at Columbiaand, in fact, a subse-quent editor of thebook Security Analy-
decided I wanted to get anMBA to advance my creden-tials. I wanted to stay in theNew York area and I wasinterested in finance, soColumbia was a natural fit.With great modesty, Iwould say that I was an at-tractive package coming outof Columbia BusinessSchool. I was Beta Gamma
Sigma, had straight A‘s, a 6
month old child and was aserious person. Wall Streetwas hiring with abandon, alot of which had to do withthe market cycle. I wasinterviewing in 1966, whichwas a year in which themarket was peaking, thoughno one knew that. I ac-cepted an offer with Gold-man Sachs, which at thetime was not what it wouldbecome a decade or twolater. This was fortunatebecause I was able to con-tribute, in a small way, to
the firm‘s later success.
I got my MBA on January31, 1967. I had a six monthold child and I had nomoney in the bank so I wasnot in the position to takethe obligatory trip to Hawaiior Australia. I started as ananalyst at Goldman the nextday. I then spent close to25 glorious years with thefirm.I had a number of differentroles in the company. Forexample I was made Partnerin charge of research in1976 and, at the same time,
I was Chairman of the firm‘s
investment policy commit-tee. For a number of years,I had been telling Goldman
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