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OverviewBerkshire Hathaway has achieved a Sharpe ratio of **0.76**, surpassing that of any other stock or mutual fund with a track record extending beyond 30 years. This indicates a substantial alpha relative to conventional risk factors. However, this alpha is rendered non-significant when adjustments are made for the Betting-Against-Beta. Additionally, it's estimated that Buffett employs an average leverage ratio of approximately 1.6:1. The success of Buffett's investments seems to stem not from chance or some mystical force but from a strategic blend of leverage use and a preference for undervalued, low-risk, high-quality stocks. Analyzing Berkshire's portfolio by separating the publicly traded stocks from the wholly-owned private enterprises reveals that the former category outperforms, implying that Buffett's impressive returns are more attributable to his stock-picking skills rather than his influence on company management. This insight has significant implications for the understanding of market efficiency and the practical application of academic financial factors. Full Product DetailsAuthor: Maxwell StarkPublisher: Algorithmic Imprint: Algorithmic Dimensions: Width: 21.60cm , Height: 0.30cm , Length: 27.90cm Weight: 0.141kg ISBN: 9786236682272ISBN 10: 6236682275 Pages: 50 Publication Date: 08 April 2024 Audience: General/trade , General Format: Paperback Publisher's Status: Active Availability: In stock We have confirmation that this item is in stock with the supplier. It will be ordered in for you and dispatched immediately. Table of ContentsReviewsAuthor InformationTab Content 6Author Website:Countries AvailableAll regions |