How Good Is Warren Buffett?

According to Insider Monkey, Buffett hasn’t done so well over the past decade:

Your source for free real-time insider trading data, Insider Monkey, analyzed the returns of Warren Buffett’s Berkshire Hathaway between 1977 and 2009. We ran hundreds of regressions to calculate Warren Buffett’s alpha(skill) for every single month, using both 5-year and 10-year historical performance data. The results based on 10-year data are smoother but paints the same picture as the results based on 5-year data. Contrary to the general perception, Buffett has not had any alpha for the past 10 years. Let us repeat that: Buffett, no alpha, for the past decade. You would have been better off if you had invested your money with David Einhorn.

See here for the details.

I would be interested to know how well Berkshire has done sans Geico. It could turn out that the great stock-picker really only chose one winner — a really, really big winner.

Posted by on October 14th, 2010 at 2:00 pm


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