French Buffett Deserves a Look

Vincent Bolloré’s investment vehicle, Bolloré SA, has outperformed Buffett’s Berkshire Hathaway over the past 20 years (16.8% per year versus Berkshire’s 10.6%), but lately the “French Buffett’s” results have been lackluster, according to a recent Barron’s article. And that’s putting pressure on fund shares, the article says. While Berkshire trades at close to a 50% […]

How to Invest Like Buffett but via Factors

As the debate continues concerning how quantitative model performance compares to that of active funds, a Bloomberg article from earlier this month discusses the findings of an AQR study that suggest how some quant models could generate returns that approximate those of legendary fund managers. AQR Capital Management, as described in the article, is a […]

Investing Like Buffett and Soros Could be Within Reach

New research shows that “ordinary” investors may be able to emulate the extraordinary tactics of legends such as Warren Buffett or George Soros by using factor-based strategies. This according to Validea CEO John Reese in last week’s issue of  The Globe and Mail. The study, conducted by AQR Capital Management, compared returns for “superstar investors […]

Buffett Could Benefit Big with Trump

President-elect Trump’s proposed corporate tax reform could be great news for Warren Buffett, according to an article in last week’s Barron’s. A drop in the tax rate from the current 35% to either 25% or 15% would reduce the company’s deferred tax liability, according to Barclays analyst Jay Gelb, and boost the book value of […]

Buffett’s Affinity for Insurance Stocks

Warren Buffett’s first investment foray into the insurance industry occurred with his purchase of National Indemnity Company in 1967, and his relationship with the sector has grown in spades over the years. In a recent article for Forbes, Validea CEO John Reese offers a brief history of the Oracle of Omaha’s trajectory and perspective on […]

Rekenthaler Report: It’s Hard to Be Like Buffett

While every fund manager yearns for Buffett results, “most don’t mimic his investment approach” writes Morningstar’s John Rekenthaler in his September report. Concentrated, low-turnover portfolios are “not for everybody,” he says, and even when managers try to follow in the Oracle’s footsteps the results are often “dismal”. Rekenthaler says there are two dozen U.S. stock […]

A Little-Known Buffett Home Run

Long before Berkshire Hathaway became the acquisition behemoth it is today, Warren Buffett was primarily involved in the insurance business. That hasn’t changed, and these operations have been some of his biggest and most successful ventures. In an article for CNBC, Validea CEO John Reese describes how the Oracle’s foresight back in the 1970s led […]

Some Shiny Apple Suppliers

The list of companies making up Apple’s supplier list number an impressive 200. The company seems to be well organized when it comes to sourcing parts, hedging itself against hiccups by having several suppliers for a single component and containing costs by instilling some healthy competition in the pack. In this week’s Forbes, Validea CEO […]

Stocks with a Durable Competitive Advantage

A mainstay of Warren Buffett’s investment philosophy is his belief that the strongest companies possess a keen competitive edge against their peers. He looks for businesses that perform consistently, regardless of outside forces, boast brand recognition, and/or provide goods and services people use on a daily basis. In an article for The Globe and Mail, […]

Are the Markets Really Efficient?

Warren Buffett has always been open about his approach to investing, singing the praises of focusing on business fundamentals to find strong stocks at good prices. However, in a recent BloombergView article, columnist Noah Smith outlines some reasons why the Buffett philosophy actually contradicts the efficient market hypothesis (EMH), an investment theory that says it’s […]

Buffett Revisited

The Oracle of Omaha is an investment legend whose tireless work ethic and down-to-earth philosophy has helped him grow Berkshire Hathaway into one of the largest companies in the world. In a recent article for Nasdaq, Validea CEO John Reese digs into Buffett’s stock selection method and offers five stocks picks that make the grade […]

Fundamentally Solid Value Picks in the Spirit of Graham and Doddsville

  In his revered 1984 speech at Columbia Business School, Warren Buffett referred to the strong track records of a group of prominent value investors as follows: “A concentration of winners that simply cannot be explained by chance can be traced to this particular intellectual village.” In other words, writes Validea CEO John Reese in […]