“Buffett’s Alpha” Academic Scientists Broke Warren Buffett’s Investment Magic Formula. Everyone knows that Warren Buffett detains a special touch as an investor, other claims he got a code a kind of Mathematics magical formula, that he used to get things done and he uses it regularly for more than five decades.
Rumors said no one knows, how the code works? Not even his close friends, business partners, relatives, and employees, from Berkshire Hathaway. But almost most everybody on earth would like to have access to this golden formula this miraculous code.
As the Berkshire Hathaway’s annual meeting took place last weekend, Investors, and curious people asked the same question they have asked each passing year, they are wondering what will happen to Berkshire Hathaway’s BRK.B, +1.85% stock performance once the legendary investor, now 87 years old, is no longer at the helm of the company.
For those people who asked this question, let me tell you that an academic study started several years ago, think to have in effect, “broke” Buffett’s secret code. The study, titled is “Buffett’s Alpha”. Written by three principals at AQR Capital Management.
Each of whom has strong academic credentials: Andrea Frazzini, David Kabiller, and Lasse Pedersen. The study derived an investment formula that, if mechanically followed over Buffett’s five-decade career, would have replicated his fantastic returns.
The research for Buffett’s Alpha code is not over yet, in fact, they continue to do it until today, nobody from now known what post Warren Buffett world will look like, but the time being the financial world is continuing undeniably flourish under, his wisdom and enlightening advises because nobody can beat him in the art investing money and accumulate wealth.
My personal question is how does he take the scientists. The researchers with those technologies, complicated algorithms, artificial intelligence. Big data and supercomputers, five decades to unlock his Buffett’s Alpha?
I am wondering if they have even been approaching closer to understand Warren Buffet magic touch investment code or formula, at all. Because of Warren Buffett simplicity and patience to conduct business, make him become a living oracle who can see for decades what other can’t even imagine coming. Anyway, the Buffett’s Alpha code is public and available for free to whom want to use it.