Yes. Part of the scientific explanation of Buffets return is explained in Pedersens "betting against beta" paper. Here, it is shown that investing with cheap le

Yes. Part of the scientific explanation of Buffets return is explained in Pedersens "betting against beta" paper. Here, it is shown that investing with cheap leverage in boring stocks (like Buffet) is better than investing in risky stocks without leverage, even when the leverage is chosen such that both strategies are equally volatile.