Buffettâs Alpha 1 Buffettâs Alpha Andrea Frazzini, David Kabiller, and Lasse Heje Pedersen* First Draft: May 3, 2012 This draft: November 21, 2013 Abstract 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
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They say 90 is the new 70, and in Warren Buffett's case, it may be true. The chairman and CEO of Berkshire Hathaway announced Sunday â his 90th birthday â that his company has acquired a slightly more than 5% stake in each of the five leading Japanese trading companies. The companies are Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui & Co., and Sumitomo Corp. Berkshire said it acquired the
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