Profs. Frazzini and Pedersen's research on Warren Buffett's investments is featured
December 02, 2013
Excerpt from Business Insider -- "'Indeed, a new NBER paper via Counterparties shows that 'Buffett's returns appear to be neither luck nor magic, but, rather, reward for the use of leverage [combined] with a focus on cheap, safe, quality stocks.' In other words, he buys boring stocks that offer steady, low returns, but he amplifies those returns by betting with borrowed money. 'We estimate that Buffett's leverage is about 1.6-to-1 on average,' write authors Andrea Frazzini, David Kabiller and Lasse H. Pedersen."