Warren Buffett Gave Up On Beating SP500

https://www.marketwatch.com/story/w...out-given-up-on-beating-the-sp-500-2019-05-10

However, I think he is still trying, using one weapon that the SP500 does not have: Buy Back. If he could buy back his stocks on the cheap when the market is down, over time he will still beat.

 

He's already set the stage for this by saying that BRK is too high right now.

 

Easy to beat the spy. NDX 12.5% since 1986 annualized.

 

Traditional investment strategy, buy and hold, is hard to outperform the index and they have high correlation.
Unlike trading (long&short) where you can use leverage to outperform the market.

 

He has interest free insurance floats, so he has leverage. Why is he underperformed?

 

Anyone did a back calculation if he did not have the short term bonds and cash float. Will he beat the market?

 

He and Munger have the ability, they just have way too much money to invest, he's commented on this numerous times.

 

Good point.