Monday, June 23, 2014

"Buffett's Alpha"


"By looking at Berkshire Hathaway's 13F filings, they estimate that Buffett's public stock investments have outperformed the market by a much narrower margin than Berkshire's growth in book value. They conclude that Buffett has enhanced his returns with cheap leverage, calculating that the effective interest rate on Berkshire's insurance float has historically been less than the T-bill rate."

1 comment:

theyenguy said...

Of note the famed Berkshire Hathaway, BRK-A, is a failed investment as is seen in its ongoing Yahoo Finance Chart, when compared to Insurance Companies, KIE, Dividend Payers, DTN, and Financials, RWW.