Reuters: US Dollar Report: SAFT ON WEALTH - Buffett and the rest of us

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

SAFT ON WEALTH - Buffett and the rest of us Aug 23rd 2012, 19:37 Thu Aug 23, 2012 3:37pm EDT Aug 23 (Reuters) - I don't know how to put this but... Warren Buffett is awesome, and you and me, we almost certainly are not. A new study aiming to get at the source of the legendary investor's outperformance demonstrates that his approach, which turned a dollar in 1976 into $1,500 today, is relatively simple: Use modest, cheap leverage to buy high-quality, cheap and safe shares. What Buffett has done but the rest of us will find difficult is two-fold. He didn't just figure out what works and stick to it, decades ahead of his many acolytes, he put himself in a position where we was able to stick with it year after year after year. Berkshire Hathaway, Buffett's investment vehicle, has produced a Sharpe ratio, a measure of risk-adjusted return, of 0.76 over the past 35 years, double that of the stock market as a whole.

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