Bershire Hathaway one size fits all
One of the overriding themes of the case was how different Buffet・s investment philosophies were from mainstream analyst and investors. ... Regardless of our personal opinions or preferences, one thing everyone could agree on is facts and performance. When results are used as criteria we all agree that Buffet・s philosophies are successful. Criticizing Buffet・s philosophies and investment strategies is like criticizing the technique of an all-pro baseball slugger whose swing is unconventional but consistently averages 300 with 70 home-runs. Buffet・s no-nonsense; nut and bolt philosophy has served himself and Hathaway・s shareholders well. ... Additionally, beta estimates are subject to potentially large errors because no one knows precisely how to measure any of the inputs required to implement the CAPM. ... With all the models that have been developed, including the CAPM, Arbitrage Pricing Theory, Fama-French 3-Factor Model, and Buffet・s Intrinsic Value, the correct method to use in valuation of companies is still not 100% clear.