Bet Against Beta Like Buffett

According to a new study, Warren Buffett has been able to produce exceptional stock market returns over the long haul not because of value investing, but instead by focusing on “boring” stocks, MSN Money’s Michael Brush writes. The study, performed by Andrea Frazzini and Lasse H. Pedersen, found that “to do better in the market, use a little leverage, or borrowed money, in your account and load up on quality, low-beta stocks,” Brush writes. “Low… Read More

High-Quality — Not Value — Key To Buffett’s Success

Warren Buffett is known as a value investor, but a recently released research paper has found that most of Buffett’s success over the long term is due not to value investing, but to his focus on high-quality companies. The paper, “Betting Against Beta” (click here for a PDF copy), was authored by Andrea Frazzini of AQR, a quantitative fund manager, and Lasse Pedersen of AQR and New York University’s Stern business school, and was highlighted recently… Read More