VALUE: After Hours (S08 E15): Can There Ever Be Another Warren Buffett?

During their recent episode, Taylor, Carlisle, and Matthew Tuttle discussed Can There Ever Be Another Warren Buffett? Here’s an excerpt from the episode:

[Matt] So I started investing in 1981 in middle school and I grew up in the same town as Peter Lynch. So I learned kind of at the feet of Fidelity, a lot of Fidelity guys in my town, you know, rigorous fundamental analysis. And that was pre-Internet, pre-Bloomberg, pre-anything.

So if I was smarter than you and willing to work harder than you, I could probably uncover tonnes of undervalued companies, hidden gems, on and on and on. Fast forward to today, we’ve got the Internet, we’ve got Bloomberg, we’ve got AI. I have access to the same information you’ve got access to.

Now, you could still look at it better than I can. But are you going to consistently find undervalued companies that Wall Street has missed? I would argue you’re not, at least not like Warren Buffett, where you can put up the returns Warren Buffett put up.

And I’m talking about his early years. In his later years, he just became, you know, a self-fulfilling prophecy. He’s getting deals that we’re not getting.

You know, just him buying a stock makes it go up. So, I mean, that’s a whole different story. But I do not believe you can generate those types of returns today when the playing field has been levelled and I have access to all the information you’ve got access to.

[Jake] We discussed the early partnership days. He was at like 40 percent over the market or something like that.

[Matt] I just I don’t think you can do that consistently. So I see a Cathie Wood doing it and I know what’s going to happen. You’re going to come back to earth.

And that’s all across the board. I mean, I’ve got a hedge fund guy that calls me every once in a while and he’ll call me like, oh, man, we’re up so big this past couple of weeks. This is great.

Hedge. Like, what do you mean? Hedge.

You’re going to give back a good chunk of those returns, sell, hedge, whatever. Then he’ll call me. Oh, my God.

You know, we’re having a rough spot. But we can’t buy because, you know, that’s just that’s just how it works. You know, I tell when the market gives you more than you think it should give you, you’re going to give some of that back.

You just are. That’s the rule of the market.

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VALUE: After Hours (S08 E15): Can There Ever Be Another Warren Buffett?

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