2:00 pm - 3:00 pm
Dr. Mingshan Zhang from the Accounting Department will present “Overconfidence, Under-reaction, and Warren Buffett’s Investments”. The seminar will be conducted via Zoom.
Warren Buffett is a long-term investor, but is required by law to disclose his trades on a quarterly basis. While the market reacts to the revelation of his trades, the reaction is incomplete. From 1980 to 2018, it has been possible to achieve investment results similar to Buffett’s own simply by following trades disclosed by Berkshire Hathaway. We surmise that Buffett’s long-term strategy exploits under-reaction to public disclosures of changes to Berkshire Hathaway’s portfolio of publicly held stocks caused by overconfidence by market participants.
Dr. Mingshan Zhang is an Associate Professor in the Accounting Department at NJCU. Her research interests include Capital Market Research in Accounting, Valuation and Asset Pricing, Institutions, and Stock Repurchases.