Buffett-style Investing
Value Investing and Growth Investing are joined at the hip
The main message from value investing strategies is to invest with low downside risk.
If a stock satisfies this criterion, you should then consider its growth in earnings to implement a value-plus-growth strategy (Buffett-style investing).
The focus in value investing is on the past, the focus in growth investing is on the future, and the focus in Buffett-style investing is on both the past and the future.
You should also pay special attention to management quality, because high-quality management is the source of growth in Buffett-style investing.
To implement the above strategy, you should compute the stock's intrinsic value and compare it with the stock's price.
As a general rule of thumb, if the price is about half the intrinsic value, it is worth investing in that stock.
The Renaissance Investor
There is more to Buffett than simply value and growth investing.
Buffett engages in
He frequently narrates investment-relevant stories from other fields such as
Given his broad knowledge and his deep understanding of investment-related topics, it is preferable to call him a renaissance investor rather than attempting to pin him down under more limiting monikers.
Value Investing and Growth Investing are joined at the hip
The main message from value investing strategies is to invest with low downside risk.
If a stock satisfies this criterion, you should then consider its growth in earnings to implement a value-plus-growth strategy (Buffett-style investing).
The focus in value investing is on the past, the focus in growth investing is on the future, and the focus in Buffett-style investing is on both the past and the future.
You should also pay special attention to management quality, because high-quality management is the source of growth in Buffett-style investing.
To implement the above strategy, you should compute the stock's intrinsic value and compare it with the stock's price.
As a general rule of thumb, if the price is about half the intrinsic value, it is worth investing in that stock.
The Renaissance Investor
There is more to Buffett than simply value and growth investing.
Buffett engages in
- arbitrage investing,
- investing in silver futures,
- betting on oil,
- forward trading in foreign currencies,
- managing a large number of wholly owned subsidiaries, and
- writing derivative contracts.
He frequently narrates investment-relevant stories from other fields such as
- psychology,
- sports,
- country music, and
- life in general.
Given his broad knowledge and his deep understanding of investment-related topics, it is preferable to call him a renaissance investor rather than attempting to pin him down under more limiting monikers.
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