Buffett style

  • 20 Aug 2012 at 6:02 PM

Cliff Asness’s Staff Built Him A Robot Warren Buffett

Do you want to invest like Warren Buffett? Sure you do. You know who will tell you how? Strangely, some guys at AQR:*

[W]e create a portfolio that tracks Buffett’s market exposure and active stock-selection themes, leveraged to the same active risk as Berkshire. We find that this systematic Buffett-style portfolio performs comparably to Berkshire Hathaway.

They acknowledge that Robo-Buffett doesn’t incur transaction costs that flesh-Buffett does (because R.-B. is as of yet just a simulation) but, that aside, “comparably” is an understatement:

Whee! Go Robo-Buffett! Who, intriguingly, looks a lot like … AQR: Read more »