Author Topic: Buffett study  (Read 5033 times)

wescobrk

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Buffett study
« on: December 06, 2013, 08:04:43 AM »
http://www.bloomberg.com/news/2013-12-06/warren-buffett-market-beating-skills-revealed-cutting-research.html

Kinda funny they did a study.
I guess next they will do a study to see if Michael Jordan was better than average basketball player.


hyten1

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Re: Buffett study
« Reply #1 on: December 06, 2013, 08:10:22 AM »
they should expand the study, figure out what each investments contribution is to WEB's success

hy

http://www.bloomberg.com/news/2013-12-06/warren-buffett-market-beating-skills-revealed-cutting-research.html

Kinda funny they did a study.
I guess next they will do a study to see if Michael Jordan was better than average basketball player.

Mephistopheles

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Re: Buffett study
« Reply #2 on: December 06, 2013, 10:37:49 AM »
"That suggested to them that Buffett’s returns are due more to stock selection than to the pressure he puts on companies he has stakes in to improve their management."

lol

twacowfca

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Re: Buffett study
« Reply #3 on: December 06, 2013, 11:53:31 AM »
I think it would be meaningful to read the study instead of commenting on what the Bloomberg reporter said about it.


wescobrk

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Re: Buffett study
« Reply #4 on: December 06, 2013, 12:58:13 PM »
The study can still be read.
What's the big deal about making the comment?

twacowfca

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Re: Buffett study
« Reply #5 on: December 07, 2013, 02:56:01 AM »
The study can still be read.
What's the big deal about making the comment?

It appears to be an update of a study that was previously published in an earlier draft.  The Buffett part was merely a small section of that study.  The update appears to be that BRK over a long period ending 2012 had a Sharpe Ratio (meaning risk adjusted returns) better than any mutual fund or any S&P 500 stock had over any similar lengthy period of thirty years from 1926 to date.  The authors also deconstructed his alpha better so that the Betting Against Beta factor that supposedly underlay his returns became far less significant when allowing for the value aspects of the low beta stocks he bought.  :)

that's not surprising because Ziemba has previously calculated that Buffett has definitely been King on the Mountain when his long term returns are calculated using Ziemba's modified Sharpe Ratio.  :)
« Last Edit: December 07, 2013, 03:08:30 AM by twacowfca »