I just finished reading "The Snowball" (Buffett bio) and can recommend it highly. You get a real sense of what it takes to follow Buffett's dictums to (taken f

I just finished reading "The Snowball" (Buffett bio) and can recommend it highly. You get a real sense of what it takes to follow Buffett's dictums to (taken from the book): 1. not lose money 2. see rule number 1 3. never go into debt Buffett only uses a computer to play bridge, "helicopter" and read newspapers. Pretty long way from Ehrenberg's #1 - "Machine-driven trading will continue to proliferate, and represent a sustained source of alpha." I had to look up alpha http://www.investopedia.com/terms/a/alpha.asp http://www.investopedia.com/terms/a/alpha.asp I think while it is likely anything new will be computerized, overused, and consequently cause "alpha" it will not be sustained. For anything sustained will be met with a financial instrument to hedge the alpha away (see LTCM). As we saw that hedge went spectacularly wrong. Instead Buffett tries to find good management running undervalued companies that he thinks he understands to be selling something people need no matter what (and with which his substantial capital can assist). Its amazing how much personal effort Buffett has taken with his various acquisitions even when he was only a shareholder to help them through rocky times and so realize value. Such a different perspective. Another Buffett rule: "Anything multiplied by zero is zero." Meaning if you constantly accept a small risk of losing it all you eventually will. Buffett prefers a higher margin of safety and look where that got him. BTW, I bought informationarbitage.net long ago because I thought it was an interesting idea. More intersting still is to just happen across the guy that owns the .com variant posting to my daily feed.