Buffett’s Alpha

marginalrevolution.com/marginalrevolution/2025/05/buffetts-alpha.html

Berkshire Hathaway has realized a Sharpe ratio of 0.76, higher than any other stock or mutual fund with a history of more than 30 years, and Berkshire has a significant alpha to traditional risk factors. However, we find that the alpha becomes insignificant when controlling for exposures…

This story appeared on marginalrevolution.com, 2025-05-03 18:45:17.
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