
Buffet's Alpha (2013) [pdf] - Tomte
http://docs.lhpedersen.com/BuffettsAlpha.pdf
======
Nokinside
The article finds the Buffet's Alpha closer to the end.

Buffet is a good investor, but his real genius is that he has build a
permanent advantage relative to other investors. His leverage is cheap and he
has money when others don't.

> One reason might be that this structure provides a steady source of
> financing, allowing him to leverage his stock selection ability. Indeed, we
> find that 36% of Buffett’s liabilities consist of insurance float with an
> average cost below the T-Bill rate.

>In summary, we find that Buffett has developed a unique access to leverage
that he has invested in safe, high-quality, cheap stocks and that these key
characteristics can largely explain his impressive performance. Buffett’s
unique access to leverage is consistent with the idea that he can earn BAB
returns driven by other investors’ leverage constraints.

