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is there still positive alpha after evaluating on the 3-factor model?
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The idea that Buffett and the rest of the SuperInvestors are crushing the markets solely because of their higher exposure to small caps and value stocks is kind of silly. You might get an extra 1-2% of annual outperformance that way, not 10-15%.
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1-2%?? What planet do you live on.
S&P vs small vs value
Small/value tilt pretty much paints the picture for anyone not otherwise altered by the SuperInvestor Frontal Lobotomy
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So in the future you predict small cap/value stocks to outperform the S&P by how many percentage points annually?
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My point was that small/value tilt in portfolio can explain a lot more than the 1-2% cited.