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Quibble... Buffet doesnt buy bad companies. He buys solid companies that have excellent management and for some reason are inexpensive at the time of purchase.
by 11thEarlOfMar 9y ago
Quibble... Buffet doesnt buy bad companies. He buys solid companies that have excellent management and for some reason are inexpensive at the time of purchase.
- tanderson92 9y ago> We show that Buffett’s performance can be largely explained by exposures to value, low-risk, and quality factors. That is, they used a factor analysis to decompose his performance by its correlation with academic "factors" which explain cross-sectional stock market returns. In "Buffett's Alpha" by Frazzini, Kabiller, and Pedersen: http://www.econ.yale.edu/~af227/pdf/Buffett's%20Alpha%20-%20Frazzini,%20Kabiller%20and%20Pedersen.pdf http://www.econ.yale.edu/~af227/pdf/Buffett's%20Alpha%20-%20...
- ringaroundthetx 9y agoNot anymore. Before he became the baby boomer conservating investor guru he made his millions borrowing in leveraged investments to buy the "cigar butts" of the equities market. Companies which had poor management.