Excess Returns, Ep. 31: Can You Quantify Warren Buffett?

In this episode, we are going to try something a little different. Our goal at Validea is to capture quantitative strategies that work over the long-term. To do that, we go through books and academic papers to find factor-based models with results to back them up. We are going to periodically do some episodes for the podcast where we do a deep dive into these strategies and look at the factors behind them.

In the first episode, we discuss:

Validea’s strategy based on Warren Buffett, which was extracted from the book Buffettology.
Look at the strategy’s investment criteria in detail, including how the model tries to identify businesses with protective moats, the secondary quality criteria used in the model and how the strategy expresses whether a stock is trading at an attractive value.
The basic question: Can Warren Buffett be quantified?