According to an AQR analysis, Warren Buffett's returns can be explained approximately 40% by profitability (low-risk, profitable companies), 40% by low-risk characteristics, and 20% by valuation multiples, showing that multiples are a tiebreaker rather than the primary driver.
factualpending
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Cliff AsnessEvidence Quote
“call it 40% looking for more profitable, uh, companies, 40% looking for lower risk companies and about 20% valuation.”
Created: 8/12/2026, 6:23:51 PM
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