Can Alternative Assets beat Warren Buffett?

The aim of this project is to demonstrate that diversification always adds value to traditional
portfolios. This diversification will be based in alternative assets that their low correlation and
powerful return risk relationship creates more efficient portfolios in terms of the Jensen´s alpha. To
demonstrate this Warren Buffett´s investment vehicle, Berkshire Hathaway, will be used to add
alternative assets with the expectation to obtain more return and a more efficient portfolio in terms
of alpha. The main indexes of each alternative asset will be used as a reference to obtain the
calculations required, they will be obtained from Thomson Reuters Eikon terminal and the
Bloomberg terminal. Finally, the conclusions will show that even for one of the most profitable
investments vehicles of the recent years is possible to obtain a better return risk relationship if they
diversify in efficient alternative assets.