Who is the greatest stock picker of all time?
Many investors knee-jerk reaction is Warren Buffett.
Understandable response, but is that the answer? Maybe not…
So who is the greatest investor of all time?
A few years ago, I asked this question of a mentor and friend. His answer surprised me. Without a moment’s hesitation, he replied that it was Peter Lynch. Our conversation went something like this…
Me: Lynch, what about Buffett? Surely his results over such a long period of time speak for themselves?
Friend: Buffett isn’t a stock picker, his success is largely due to factor bets such as value and quality. Lynch, on the other hand, was a genuine stock picker.
Me: What makes you say that?
Friend: He performed well, even when experiencing outflows. Buffett never had to manage outflows.(1) Also, the magnitude of his out-performance was so large that it’s statistically unlikely that his performance was due to luck.
You can read the rest of my post on the Alpha Architect Blog.
P.S. A big thank you to Wes Gray, Jack Vogel and the team at Alpha Architect for inviting me to blog with them!
