#SFTW: Buffett vs the index — who’s winning?

Posted by Robin Powell on March 4, 2016

SOMETHING FOR THE WEEKEND

Buffett

The media loves Warren Buffett. Everyone does. And I’m a big fan too, not least because he’s a staunch advocate of indexing for ordinary investors.

He’s also idolised by those who believe in active management. He is, simply, the Oracle of Omaha — the most famous active investor in the world.

But how good is he? Don’t get me wrong, Buffett’s long-term performance has been exceptional. But some of the old magic appears to have worn off over the years.

I’ve been speaking to statistician, author and blogger Salil Mehta. Based at Harvard, Salil runs the website Statistical Ideas, and serves on the Editorial Board of the American Statistical Association and as a consultant to BlackRock.

If you put to one side the media adulation and focus on the returns that Buffett has actually delivered, Professor Mehta says his record is not as extraordinary as most people think.

Read the interview with Salil Mehta here

 

Other posts you may have missed..

Beware over-hyped products that seem too good to be true

Casting out sin — passive investing for Catholics

Top 5 posts for February 2016

Transparency — the time for talking is over

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What has the fund industry got to do with the rise of Jeremy Corbyn?

“Best-buy” fund lists are ripe for regulation

What would Brexit mean for UK investors?

If you’re determined to use active funds, at least do this

Which of these funds would you choose?

 

Also worth reading..

Hedge funds:

Phew! For the first time more investors are cutting their hedge fund exposure (Jen Wieczner)

Strategy:

Over-relying on dividend-yielding stocks is like building your house with straw (Mark Hebner)

Is the worst over for stocks? Why being contrarian doesn’t always pay (Steven Russolillo)

Investor education:

Everything you need to know about Warren Buffett’s latest letter to shareholders (Mitchell Tuchman)

11 things investors ought to know about bonds (William Cowie)

Investor behaviour:

Investors much resist the constant urge to “do something” (Dan Solin)

Investors are a notoriously optimistic bunch when it comes to expecting the improbable (Tim Richards)

Advisers:

Bad advisers don’t leave the business; they just move on to a different firm (Barry Ritholtz)

Want to grow your advice business? Employ a marketing plan that uses these tools (Kerry Davis)

 

This is fascinating..

What goes on in an investor’s brain when they make an important decision? (CFA Institute)

 

Good news for UK investors..

The Financial Times has just launched a user-friendly online calculator to help UK investors to work out how much they’re paying in fees and charges:

Calculate the hidden cost of fund fees

 

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Robin Powell

Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.

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