The Value in Following the Smart Money

Another great summary from CXO, this time on a new paper on tracking Warren Buffett: Overconfidence, Under-Reaction, and Warren Buffett’s Investments.

They dispel a few Buffett truisms (like his holding period – this shows the median holding period is just one year).  And, no surprise to AlphaClone subscribers, you can follow his picks quarterly and still pick up a lot of alpha (they estimate over 6% per annum).  That is roughly in line with the figures from AC since ’00.