Why Is It that I am not Warren Buffett?

7 Pages Posted: 22 Jun 2012  

Elena Chirkova

National Research University Higher School of Economics

Date Written: June 21, 2012

Abstract

This article offers a new explanation of the Warren Buffett’s investment phenomenon. This explanation is different from that offered by the promoters of the value investing who suggest the idea of the existence of a superior in-vestment strategy and from that put forward by the advocates of the efficient market theory who discuss the role of pure luck. In the author’s opinion, Warren Buffett’s investment success is best explained by a purposefully built sustainable competitive advantage over other investors in a particular market niche. This part of the success story is costly to replicate and most likely the establishment of such an advantage would take many years. The specific investment strategy and luck play a partial role.

Keywords: Warren Buffett, value investing, efficient market theory

JEL Classification: G10, G14

Suggested Citation

Chirkova, Elena, Why Is It that I am not Warren Buffett? (June 21, 2012). Available at SSRN: https://ssrn.com/abstract=2088786 or http://dx.doi.org/10.2139/ssrn.2088786

Elena Chirkova (Contact Author)

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Paper statistics

Downloads
431
Rank
53,601
Abstract Views
1,530