Earlier this month, I was interviewed by Shai Dardashti, North American Managing Director for The Manual of Ideas, a subscription service that interviews practitioners and thought leaders in the value investing space.
At one point in the interview, Shai asked me what about The Framework Investing I was most proud. My answers were
- A sensible, academically sound, and testable framework for analyzing and valuing the growth prospects of a firm, and
- A method that long-term investors could use to measure and manage leverage.
Talking about this latter point is when I brought up the topic of a paper by AQR entitled Buffett’s Alpha (see the site’s Knowledge Base for a copy of this research), and talked about why it should be required reading for value investors in the Buffett mold.
Here’s what I had to say (2 minutes):