Warren Buffett's investment strategy - research from NYU claims to have finally revealed the strategy that has cemented Buffett's position as the world's most...

Joanne Ma

Warren Buffett's investment strategy - research from NYU claims to have finally revealed the strategy that has cemented Buffett's position as the world's most successful investor. The paper titled 'Buffett's Alpha', claims the secret to Buffett's success could be best described as buy-and-hold-and-leverage. The paper states that while Buffett is known as the ultimate value investor, his focus on buying safe and reliable stocks at a fair price has contributed just as much to his performance. But this in itself does not explain how Berkshire Hathaway has managed to deliver long term returns of 19% over the risk-free rate, compared with just 6% from the S&P500. The answer is that Buffett has boosted his returns by using leverage, the report says, and that he has stuck to a good strategy for a very long time, surviving rough periods where others might be forced into a fire sale. (VIEW LINK)


Comments

Please sign in to comment on this wire.