Lou Simpson is going back to work, but he's not going back into the game for the money.
Last August, he was planning to retirefrom Geico at the end of the year, after decades of independently, and very profitably, managing the Berkshire Hathaway subsidiary's multi-billion dollar stock portfolio.
His profitable picks, listed in Berkshire's portfolio disclosures, would sometimes be attributed to Warren Buffett himself.
In his 2004 letter to shareholders, Buffett wrote that Simpson is "a cinch to be inducted into the investment Hall of Fame."
From his new home in Florida, Simpson tells Bloombergthat he "did retire for a day" before realizing that "I would probably drive myself crazy and my wife crazy if I really retired and didn't do anything."
So he's filed plans with the SEC to open an investment-advisory firm that will manage $150 million to $200 million (to start) for family, friends, and some charities.
Simpson's firm, SQ Advisors, will collect a 1 percent management fee, with no additional fees for performance. That contrasts with the standard hedge fund's cut of 2 percent of assets and 20 percent of profits.
He tells Bloomberg, "This business is not being run to maximize income. One of our prime thoughts was to try to help people."