As Warren Buffett wrote in Berkshire Hathaway’s annual report in late February 2009, Wall Street needs to tread lightly around quants and their models. “Beware of geeks bearing formulas,” Buffett warned. “People assume that if they use higher mathematics and computer models they’re doing the Lord’s work,” observed Buffett’s longtime partner, the cerebral Charlie Munger. “They’re usually doing the devil’s work.”
