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I believe that, because of its size, Berkshire has morphed into a surrogate for the S&P 500. If you invest in Berkshire, you can expect to generate S&P 500-like returns.

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My Top Two Investment Strategies That ??Beat Buffett?

I believe that, because of its size, Berkshire has morphed into a surrogate for the S&P 500. If you invest in Berkshire, you can expect to generate S&P 500-like returns.

Last week, I wrote about my $25,000 bet against famed investor Warren Buffett.

You may recall that I placed a bet with St. Louis-based money manager David Rolfe that a low-cost U.S. small-cap index fund like Vanguard Russell 2000 Index ETF (VTWO) would outperform Warren Buffett’s Berkshire Hathaway (BRK-B) over the next decade.

That’s also why I recently recommended VTWO to subscribers of my monthly Alpha Investor Letter.

(You can also read about David Rolfe’s side of the bet, as well as Mark Hulbert’s take on today’s Marketwatch.com.)

On its face, it may seem like that it would be a rare investment strategy that could outperform the ??Oracle of Omaha.?

I disagree.

I believe that, because of its size, Berkshire has morphed into a surrogate for the S&P 500.

If you invest in Berkshire — as I do for myself and on behalf of my clients and Global Guru Capital — you can expect to generate S&P 500-like returns.

Berkshire does have one big advantage.

With a ??beta? of 0.57, you’ll generate these returns with lower volatility than the S&P 500 itself.

Nevertheless, just as I think there is more than one way to skin a cat, there’s more than just one way — like investing in U.S. small caps through VTWO — you can ??beat Buffett.?

Read more about these Buffett-beating strategies at Eagle Daily Investor.

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Written By

Nicolas A. Vardy is the London-based International Economics Correspondent for Human Events.

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archive

My Top Two Investment Strategies That “Beat Buffett”

Last week, I wrote about my $25,000 bet against famed investor Warren Buffett.

You may recall that I placed a bet with St. Louis-based money manager David Rolfe that a low-cost U.S. small-cap index fund like Vanguard Russell 2000 Index ETF (VTWO) would outperform Warren Buffett’s Berkshire Hathaway (BRK-B) over the next decade.

That’s also why I recently recommended VTWO to subscribers of my monthly Alpha Investor Letter.

(You can also read about David Rolfe’s side of the bet, as well as Mark Hulbert’s take on today’s Marketwatch.com.)

On its face, it may seem like that it would be a rare investment strategy that could outperform the “Oracle of Omaha.”

I disagree.

I believe that, because of its size, Berkshire has morphed into a surrogate for the S&P 500.

If you invest in Berkshire — as I do for myself and on behalf of my clients and Global Guru Capital — you can expect to generate S&P 500-like returns.

Berkshire does have one big advantage.

With a “beta” of 0.57, you’ll generate these returns with lower volatility than the S&P 500 itself.

Nevertheless, just as I think there is more than one way to skin a cat, there’s more than just one way — like investing in U.S. small caps through VTWO — you can “beat Buffett.”

Read more about these Buffett-beating strategies at Eagle Daily Investor.

Newsletter Signup.

Sign up to the Human Events newsletter

TRENDING NOW:

The Divided State of Britain.

CULTURE

Gulf of Oman 'attack': Oil tankers on fire amid rising tensions between Iran and rivals Gulf of Oman 'attack': Oil tankers on fire amid rising tensions between Iran and rivals

Don’t Rush to War with Iran Over Some Tankers.

U.S. POLITICS

Democracy Dies with Chinese Propaganda.

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A Muslim Brotherhood Terror Designation Could Backfire.

FOREIGN AFFAIRS

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