Buffett in Foresight and Hindsight

Statman, Meir; Scheid, Jonathan

doi:10.2139/ssrn.277161

Abstract

References (18)

Citations (2)

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Buffett in Foresight and Hindsight

Meir Statman

Santa Clara University - Department of Finance; Tilburg University

Assante Asset Management Inc.

September 2001

Santa Clara University Working Paper No. 00/01-37

Abstract:
The price of Berkshire Hathaway shares increased at a rate more than double the rate of the S&P 500 Index, from $18 on May 10, 1965, when Warren Buffett took control of the company, to $71,000 by the end of 2000. We show that while some investors saw Berkshire Hathaway?s amazing performance in foresight, investors as a whole did not. We use this evidence to discuss the pitfalls of hindsight in the assessment of investment foresight.

Number of Pages in PDF File: 20

Keywords: Buffett, Cognitive Biases, Behavioral Finance, Market Efficiency, Performance Evaluation

JEL Classification: G14

working papers series

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Date posted: July 22, 2001

Suggested Citation

Statman, Meir and Scheid, Jonathan, Buffett in Foresight and Hindsight (September 2001). Santa Clara University Working Paper No. 00/01-37. Available at SSRN: http://ssrn.com/abstract=277161 or http://dx.doi.org/10.2139/ssrn.277161

Contact Information

Meir Statman (Contact Author) Santa Clara University - Department of Finance ( email ) 500 El Camino Real Santa Clara, CA 95053 United States 408-554-4147 (Phone) 408-554-4029 (Fax)
Tilburg University ( email ) Tilburg Netherlands
Jonathan Scheid Assante Asset Management Inc. ( email ) 1190 Saratoga Avenue, Suite 200 San Jose, CA 95129 United States

Abstract

References (18)

Citations (2)

Buffett in Foresight and Hindsight

Meir Statman

Jonathan Scheid

Date posted: July 22, 2001

Suggested Citation

Contact Information

Meir Statman (Contact Author)

Jonathan Scheid