Buffett's success as an investor has often befuddled academics. Is he the luckiest man in the world? Nassim Nicholas Taleb, in saying that he would choose George Soros over Buffett as an investor, has said, "I am not saying Buffett isn't as good as Soros. I am saying that the probability Soros's returns come from randomness is much smaller because he did almost everything: he bought currencies, he sold currencies, he did arbitrages. He made a lot more decisions. Buffett followed a strategy to buy companies that had a certain earnings profile, and it worked for him. There is a lot more luck involved in this strategy. "
But a new academic study does make it sound like skill has had a lot to do with Buffett's success as an investor. The study is entitled "Buffett's Alpha," by Andrea Frazzini, David Kabiller, and Lasse H. Pedersen (2013). They state that: "The standard academic factors that capture the market, size, value, and momentum premia cannot explain Buffett's performance so it has to date been a mystery." The authors then go on to demystify it. I would suggest that anyone who has simply listened to what Buffett has been saying for years would not have found his success a mystery, but now it has the imprimatur of academic rigor.
Source: Seeking Alpha
Related Articles:
- 8 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends
- Three Keys For Successful Dividend Growth Investing
- 12 Dividend Stocks With A Quick Payback
- 9 High-Rated Dividend Stocks With Above Target Returns
- 9 High-Yielding Utilities With A Growing Dividends
Academics Confirm That Buffett's Success Is No Mystery
Posted by D4L | Saturday, November 30, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
In short, dividend-bearing stocks are one of the smartest approaches stock investors have available currently. The same is true in strong ec...
-
If your growth-investing days are over (or nearly so) and you're more interested in steady income, start your search with all-weather st...
-
Even in the current inflationary environment, where stocks across a wide variety of sectors are trading down, companies with a favorable his...
-
Finding cheap dividend stocks is critical for another reason. By the time the Federal Reserve meets for the second time in 2023, the central...
-
Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is crushing the market this year as value and dividend stocks have pulle...
-
Investing in passive income can allow you to make money with minimal portfolio management. There are many types of investments to make passi...
-
ETF investors willing to take higher risk for higher returns might very well be a little miffed. Dividend- and low-volatility exchange trade...
-
Many companies make very predictable fixed dividend payments each quarter. When they do, their investors have a pretty good idea of how much...
-
As 2022 wraps up, many investors are likely looking for ways to position their portfolio for more macroeconomic uncertainty next year. After...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.