David Einhorn’s the founder and president of Greenlight Capital – a hedge fund with an distinctive report since its inception in 1996. And I feel the similarities with billionaire investor Warren Buffett are hanging. 

Buffett scaling again his involvement with Berkshire Hathaway leaves a void within the worth investing neighborhood. However I feel Einhorn’s a terrific instance of somebody to look up to.

The following Buffett?

There’s rather a lot about the way in which Einhorn approaches investing that jogs my memory of Buffett. The obvious is a give attention to the long run with regards to investing. 

In its personal phrases, Greenlight Capital doesn’t goal to outperform the S&P 500 in each quarter or yearly. As a substitute, it focuses on making stable funding selections that may repay over time. 

One other key similarity is the give attention to corporations slightly than share costs. Just lately, Einhorn’s taken the view that the inventory market has turn out to be much less environment friendly in correcting mis-valued shares. Consequently, he advocates in search of instances the place companies themselves can present returns for traders. This may be by dividends or share buybacks. 

Within the 2007 shareholder letter, Buffett mentioned it was his intention to herald somebody to handle Berkshire’s funding portfolio. And Einhorn was one of many names rumoured to have been thought-about.

It’s been speculated Einhorn wasn’t since he may earn extra money together with his personal fund. However whereas the rumours have been by no means confirmed, I’m not the one one who sees some key similarities.

What’s Einhorn shopping for?

One inventory Greenlight Capital’s been shopping for lately is Core Pure Assets (NYSE:CNR). The corporate was fashioned at the beginning of 2025 by the merger of Arch Assets and CONSOL Power. 

Since then, the inventory’s fallen round 33%. And whereas it’s been certainly one of Greenlight’s worst-performing investments this yr, Einhorn has been seeking to reap the benefits of a possibility.

In the latest letter to shareholders, Greenlight recognized the dangers with the corporate. These embrace falling coal costs and the potential for a commerce warfare to weigh on demand. Importantly although, Einhorn additionally acknowledged why the agency has continued shopping for the inventory. Put merely, it has the capability to return numerous money to traders through dividends and share buybacks.

Greenlight would possibly properly be onto one thing – Core Pure Assets repurchased 3% of its excellent shares between 20 February and 31 March. On high of this, it has authorisation to purchase in one other 21%.

I’m not about to purchase any inventory simply because another person has. However the factors Einhorn makes are sufficient to persuade me Core Pure Assets is value a better look.

Traders would possibly properly suppose that goes a great distance in direction of limiting the general danger. And that is the sort of strategy I affiliate with Buffett. 

An investor to keep watch over

Since its inception simply in need of 30 years in the past, Greenlight Capital has generated a median annual return of just about 13%, in comparison with 10% for the S&P 500.

Perhaps the reviews of Einhorn contemplating a job at Berkshire Hathaway years in the past are simply rumours. However as Buffett steps again, that is somebody I feel traders could be smart to concentrate to.