Want Buffett’s Returns? Here’s How To Get Them
Guest: Episode #13 has no guest, but is co-hosted by Meb’s co-worker, Jeff Remsburg.
Date: 8/8/16
Run-Time: 48:20
Topics: Stock picking is hard—really hard. Fortunately, there’s a simple strategy you could begin following today to improve your success. It’s simple to implement, takes just minutes of your time, yet has the potential to vastly improve your investing results. Sadly, if you’re like the average investor, you don’t even know it exists. So what is it? Well, consider the world’s star hedge fund managers – the Buffetts, Klarmans, and Teppers – the guys with average yearly returns in the upper teens and twenties. What if you knew what they were investing in right this second? Logic would suggest if you invested alongside them, you too could post their extraordinary returns. Well, it turns out, the option is available to you thanks to the SEC and Form 13F. This is a form professional fund managers with more than $100m in U.S.-listed assets must fill out. Best of all, it’s available to the public, providing you and me a way to “peek over the shoulder” of some of the world’s most successful investors. Of course, there are some issues with this strategy. For instance, there’s a 45-delay in reporting, there can be inexact holdings, and the biggest one – the fluctuating success of your chosen manager. Bill Ackman’s recent debacle with Valeant certainly comes to mind. No, it’s not easy; a 13F investing strategy takes dedication. Many of the star managers who post amazing long-term returns can actually underperform for years at a time. Would you stay invested alongside them long enough to ride out those barren stretches? Or would fear and second-guessing shake you out? Turns out there are a few ways you can improve your chance of success. Find out what they are in Episode 13.
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Want Buffett’s Returns? Here’s How To Get Them
Comments or suggestions? Email us [email protected]
Links from the Episode:
- Investing with Third Point
- 9% Alpha with Munger & Van Gogh
- What Is a Better Strategy – Invest In Berkshire, Or Buffett’s Stock Picks?
- How to Beat 98% Of All Mutual Funds
- “The Capitalism Distribution” – Longboard Asset Management
- 2014 Berkshire Hathaway annual report
- TIAA-CREF study
- The Warren Buffett Way: Investment Strategies of the World’s Greatest Investor – Hagstrom
- “Buffett’s Alpha” – AQR Capital
- “Imitation is the Sincerest Form of Flattery: Warren Buffett and Berkshire Hathaway” – Gerald Martin and John Puthenpurackal
- Foundations and Endowment Investing – Mark Yusko of Morgan Creek Capital
- “Rules of Prudence for Individual Investors” – Mark Kritzman
- “How Active is Your Fund Manager? A New Measure That Predicts Performance” – Martijn Cremers and Antti Petajisto
- EDGAR database
- EDGAR Online
Websites
Below are some great websites for tracking hedge funds as well as finding new investment ideas:
- AlphaClone
- Barron’s Roundtable
- Bloomberg Hedge Fund Brief
- CXO Advisory
- DealBook
- Filings Analysis
- Hedge Fund Alert
- Hedge Fund Letters
- Hedge Fund Wisdom
- Insider Monkey
- Insider Score
- Institutional Investor
- J3SG
- Market Folly
- Novus Partners
- SumZero
- SuperInvestor Insight
- Turnkey Analyst
- Validea
- Value Investing Club
- Whale Wisdom
Conferences
Below is a list of conferences that are a good source of new ideas, roughly in approximate order of the calendar year:
- Wine Retreat
- Ira Sohn
- Value Investing Congress
- Value Conferences
- Drobny
- The Big Picture
- Boston Investment Conference
- Grant’s Conference
- Invest for Kids
- Santangels Forum
- Barron’s Roundtable
- UVa Investment Conference
- Great Investors’ Best Ideas
- Bloomberg Global Summit
- Harbor Investment Conference
Books Profiling Top Hedge Fund Managers
Below is a list of books that profile top hedge fund managers.
You can also find this list on Amazon here: Hedge Fund Manager Profiles.
- Hedge Hunters by Katherine Burton
- Yusko, Armitage, Effron, Ainslie, Pickens, Anderson, Robertson, Loeb
- 20/20 Visionby Harry Liem
- Dalio, Inker, Beckers, Mobius, Harding
- The New Investment Superstars by Lois Peltz
- Ainslie, Cooperman, Griffin, Henry, Tepper, Sussman
- Market Wizards by Jack Schwager
- Kovner, Dennis, Tudor Jones, Seykota, Steinhardt, Rogers
- The New Market Wizards by Jack Schwager
- Lipschutz, Eckhardt, Trout, Druckenmiller, Sperandeo, Basso, Hull
- Inside the House of Money and The Invisible Hands by Steven Drobny
- Fooling Some of the People All of the Time by David Einhorn
- Money Masters of Our Time by John Train
- Buffett, Cabot, Fisher, Graham, Kroll, Price, Templeton, Tisch, Wilson
- The New Money Masters by John Train
- Soros, Lynch, Neff, Rogers, Caret
- Investment Gurus by Peter Tanous
- Price, Gabelli, Sharpe, Fama, Sinquefield, D.E. Shaw
- More Money than God by Sebastian Mallaby
- All About Hedge Funds by Robert Jaeger
- Absolute Returns by Alexander Ineichen
- Handbook of Alternative Investments by Mark Anson
- Profiting from Hedge Funds by John Vincent
Suggested Reading from Top Hedge Fund Managers
Below are a few more reading suggestions from various hedge fund managers:
- Dan Loeb’s Reading List
- Bill Ackman’s Reading List
- Seth Klarman’s Reading List
- David Einhorn’s Reading List
- Warren Buffett’s Reading List
