Buffett's alpha: secrets of a successful investor

For more than 30 years, Buffett's Berkshire Hathaway has delivered a better risk-adjusted performance than any other stock or US mutual fund. The paper, written by researchers at New York University and AQR Capital Management, says Buffett's success is partly down to how he has boosted his returns with leverage and has stuck to his strategy for the long term. Buffett has survived very rough periods where others might have been forced into a fire sale or a career shift, according to the research. "We estimate that Buffett applies a leverage of about 1.6-to-1, boosting both his risk ...