THE SUPERINVESTORS OF GRAHAM-AND-DODDSVILLE.
Buffett contributed to the Columbia Business School Magazine, Hermes the article, “The Superinvestors of Graham-and-Doddsville”.
This reviews the very long run investment performance of investors educated in the search for value.
This cognition, the value approach, is unparalleled in how many investors it has successfully served, compared to other approaches – technical analysis, sector rotation, momentum, and so on.
As
Buffett says “the idea of buying dollar bills for 40 cents takes immediately with people or it doesn’t (grab a
person right away, no matter how much you talk to a person and show him records).”
We believe Warren Buffett’s genius is his ability to judiciously (as opposed to opportunistically) transcend investment philosophies in search of the answer to the question asked , “What works in Investing”.
STANDING ON THE SHOULDERS OF THE GIANTS
We aim to stand on the shoulders of the above-mentioned giants using investment philosophy and process wholly based on buying stocks at a margin of safety to our view of intrinsic value.
While we enormously prefer to buy high quality companies with wide moats protecting excess profitability, there are of course occasions when the market bids up quality beyond fair value, negating the types of opportunities sought out by Buffett and Munger.
In these instances, we walk in the footsteps of classic value investors like Walter Schloss, sifting through less advantaged (or more mediocre) companies in search of even larger margins of safety to our view of intrinsic value.
What we refuse to do is to buy risk instead of value in search of excess returns.
Buffett contributed to the Columbia Business School Magazine, Hermes the article, “The Superinvestors of Graham-and-Doddsville”.
This reviews the very long run investment performance of investors educated in the search for value.
This cognition, the value approach, is unparalleled in how many investors it has successfully served, compared to other approaches – technical analysis, sector rotation, momentum, and so on.
- As evidence of this, Warren names disciples of the value approach – Walter Schloss, Tom Knap and Ed Anderson of Tweedy Browne, Bill Ruane of the Sequoia, Rick Guerin of Pacific Partners, and Stan Perlmeter of Perlmeter Investments.
- Today, there is a new line-up of younger value orientated 11 investors contributing to Buffett’s case – Bill Miller, Chris Davis, Bruce Berkowitz, Seth Klarman to name a few.
We believe Warren Buffett’s genius is his ability to judiciously (as opposed to opportunistically) transcend investment philosophies in search of the answer to the question asked , “What works in Investing”.
STANDING ON THE SHOULDERS OF THE GIANTS
We aim to stand on the shoulders of the above-mentioned giants using investment philosophy and process wholly based on buying stocks at a margin of safety to our view of intrinsic value.
- PREFER TO BUY HIGH QUALITY COMPANIES
While we enormously prefer to buy high quality companies with wide moats protecting excess profitability, there are of course occasions when the market bids up quality beyond fair value, negating the types of opportunities sought out by Buffett and Munger.
- MEDIOCRE COMPANIES WITH EVEN LARGER MARGINS OF SAFETY
In these instances, we walk in the footsteps of classic value investors like Walter Schloss, sifting through less advantaged (or more mediocre) companies in search of even larger margins of safety to our view of intrinsic value.
- IN SEARCH OF EXCESS RETURNS, AVOID BUYING RISK AND BUY VALUE.
What we refuse to do is to buy risk instead of value in search of excess returns.
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