Is Quant Investing better than Warren Buffet and those who do believe in Fundamental Investing?

(Last Updated On: July 22, 2010)

Is Quant Investing better than Warren Buffet and those who do believe in Fundamental Investing?
The first question to answer on this is the amount of investing you are doing. This will measure which is more effective which would based off if you are trading intraday or a fundamental investor like Warren Buffet.
It also comes down to the algos of the quant versus the insight of fundamental investing. When you measure how someone like Fischer Black using his own signals to do quant analysis. Some would definitely say that quant investing has more impact on a short term basis and fundamental investing effects long term. As you can, both types of analysis depend on your goals versus short and long term basis.
Some would say that fundamental investors add value to the stock markets versus quant investors. I have read white papers and reports that say that if you control your investment risk, you would never really add value to your margin account. If you even add the Quant methods, it could negatively impact your margin account and hurt performance. Is this true?
If that is the case, why are so many institutional investment houses like investment banks, hedge fund, or boutiques toss the traditional traders? They are all getting replaced by quant analysts. What about all the algo based trading platforms taking over?
The one thing I like about fundamental analysis is trying to figure out your entry and exit points. Also, technical analysts limit their universe only to positive quality companies. Fundamental analysis includes:
1. Economic analysis
2. Industry analysis
3. Company analysis
There are also different portfolio styles which include the classic buy and hold, contrarian, value investing, and a few others.
There are so many critics of these methods.
What I am attracted to quant is basically building algo models to do auto trading? I find that really appealing. This is obviously focusing on the technology versus my own money.

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

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