Ep. 758: The Foundation of Good Trading with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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Warren Buffett's Shop Ratio
Warren Buffett is running the firm Berkshire Hathaway and so one way to look at his performances was to follow that stock price. We then regress him on both sort of the standard factor including value factor as well as this what we call quality minus junk. And it turns out we can actually explain a large part of his performance. He likes to buy stable profitable high quality companies at a reasonable price.
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