Warren Buffett’s “Bet” – Vanguard S&P Fund vs. Active Managers

Warren Buffett publicly offered to wager $500,000 that no investment pro could select a set of at least five hedge funds that would over an extended period match the performance of an unmanaged S&P 500 index fund charging only token fees (December 19, 2007) Buffett suggested a ten-year bet and named a low-cost Vanguard S&P […]

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Compound Mispricings

A “compound mispricing” is a situation where both a firm and a security or derivative security is mispriced Can often look for compound mispricings in multifaceted corporate structures Holding companies and derivative securities such as long-term equity anticipation securities (LEAPs) fit the bill Voting and/or non-voting securities such as Korean or German preferred securities or […]

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Portrait of a Superforecaster

Perpetual Beta – Broyhill Asset Management (The View From The Blue Ridge), May 26, 2017 “The strongest predictor of rising into the ranks of superforecasters is perpetual beta – the degree to which one is committed to belief updating and self-improvement. It is roughly three times as powerful a predictor as its closest rival, intelligence.” […]

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