1959: The following ad appeared in the Miami News on January 19, 1959, 19 days after Castro came to power.1961: Victorious Castro bans electionsCuba’s prime minister, Dr Fidel Castro, has proclaimed Cuba a socialist nation and abolished elections.
Hundreds of thousands of Cubans attending a May Day parade in the capital Havana roared with approval when their leader announced: “The revolution has no time for elections. There is no more democratic government in Latin America than the revolutionary government.” –BBC Report
Lesson: Be skeptical of those in power, especially Tyrants.
Buffett’s Alpha: Buffett’s_Alpha_-_Frazzini,_Kabiller_and_Pedersen
Thanks to a reader.
Excellent read on Buffett there, John.
Yes, of course, the notion that if you buy shares in Coca Cola at the right price and own it for a decade and achieve 50% return pa is a nonsense.
I particularly enjoyed the paper because I’ve done returns based style analysis on Buffett’s returns before only to end up having to add a large, positive “fudge factor” (that is, alpha) to my multiple regression model to get matching returns.
So, we can outperform the S&P either by investing in high beta with no leverage or leveraging up on low beta, high quality companies. Unfortunately my online trading provider charges 8% annually for margin. Maybe I can find some nanocap insurance company to acquire personally so that I can have my own cheap float to work with.