Monday, March 1, 2010
There Can Be Only One?
With the release of Warren Buffett's latest letter to shareholders (PDF), the Oracle of Omaha is in the news. Which brings up what strikes me as a huge oddities in American business: why is there only one Warren Buffet? There is no rocket science involved in Buffet's investment strategy, and in the aggregate his portfolio does significantly better than the S&P. Doesn't this point to a gigantic market inefficiency? Shouldn't other investors be able to engage in strategies similar to those adopted by Warren Buffett and reap long term returns while being significantly shielded from risk?