The idea of investing alongside great investors is nothing new. Investors have attempted to emulate Buffett for decades. Studies, stock screens, and more try to decipher exactly what drives his performance. But what if they settled for a close second and just copied him?
Invest with the House, by Meb Faber, answers that question and more.
Buffett’s not the only one with a track record of beating the market. The book digs into twenty successful hedge fund managers (most managers fall into the value camp though each has a slightly different style), clones their stock picks, compares the results to the market (the S&P 500), and provides an easy process to follow.
Essentially, Faber created a stock portfolio for each fund manager, going back to 2000, based on an equal weighting of their ten largest holdings at the time and rebalanced quarterly as holdings changed. Continue Reading…