In the 1950s, Warren Buffett was a “cigar butt” specialist. He looked for mediocre companies selling at such low prices that he could get one “free puff” out of them usually through a liquidation or a quick mean-reversion. He was incredibly good at it, averaging nearly 30% annually. By contrast, his later career at Berkshire … Continue reading The Curse of High Returns: Why the “Cigar Butt” Buffett Would Be Poorer Today