I measure success by how many people love me. And the best way to be loved is to be loveable. –Warren Buffett
Every single media figure should study Warren Buffett. Buffett has curated the greatest public image of all time.
Look at how adorable he is. He sensibly buys value stocks! …with 28% of his portfolio. The other 72% is for highly leveraged bets (what, did you really think that he could become the richest man in the world through value investing alone?)
Warren Buffett is a value investor in the same way that payday loan sharks are value investors. Sure, they’re acquiring assets from distressed debtors on the cheap. The only difference is that corporations aren’t people.
7 Easy Steps to Invest Like Warren Buffett –PragCap
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Benjamin Graham – also known as The Dean of Wall Street and The Father of Value Investing – was a scholar and financial analyst who mentored legendary investors such as Warren Buffett, William J. Ruane, Irving Kahn and Walter J. Schloss.
Warren Buffett once wrote a detailed article explaining how Graham’s record of creating exceptional investors (such as Buffett himself) is unquestionable, and how Graham’s principles are everlasting. The article is called “The Superinvestors of Graham-and-Doddsville”.
Buffett describes Graham’s book – The Intelligent Investor – as “by far the best book about investing ever written” (in its preface).
Graham’s first recommended strategy – for casual investors – was to invest in Index stocks.
For more serious investors, Graham recommended three different categories of stocks – Defensive, Enterprising and NCAV – and 17 qualitative and quantitative rules for identifying them.
For advanced investors, Graham described various “special situations”.
The first requires almost no analysis, and is easily accomplished today with a good S&P500 Index fund.
The last requires more than the average level of ability and experience. Such stocks are also not amenable to impartial algorithmic analysis, and require a case-specific approach.
But Defensive, Enterprising and NCAV stocks can be reliably detected by today’s data-mining software, and offer a great avenue for accurate automated analysis and profitable investment.