Lifting the lid on the Sage of Omaha's Investment Secrets

More than 40,000 people undertook the pilgrimage to Nebraska to attend Berkshire’s Hathaway’s AGM on May 2nd. They had good reason to listen to the insights of Chairman, Warren Buffett, considered by many to be the greatest investor of modern times. Berkshire Hathaway, the company he founded almost fifty years ago, has delivered to shareholders compound annual growth in returns of over 20 per cent over this time, handsomely beating the S&P500. In the post, I discuss recent academic work that seeks to explain the source of Mr Buffett’s alpha. In the full text report, I apply Mr Buffett’s principles to Australia, and find that thirteen stocks screen strongly across his preferred attributes, including Echo Entertainment Group, CSR and IAG. Of the eleven stocks that form part of the short portfolio, three include: Caltex, Oil Search and Premier Investment. (VIEW LINK)