Comments on: Is Warren Buffett Still a Value Investor? Guru Portfolio Review http://www.moderngraham.com/?p=1854 Devoted to the study and modernization of the theories of Benjamin Graham and Warren Buffett. Fri, 08 Jan 2010 16:38:12 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Why Berkshire’s BNI Acquisition Is a Great Deal | Reaction Radio http://www.moderngraham.com/?p=1854&cpage=1#comment-9058 Why Berkshire’s BNI Acquisition Is a Great Deal | Reaction Radio Tue, 03 Nov 2009 16:03:43 +0000 http://www.moderngraham.com/?p=1854#comment-9058 [...] I’ve been a little critical of Buffett lately (see my take on his portfolio in the post Is Warren Buffett Still a Value Investor?) but I’ll be the first to admit that he got a great deal [...] [...] I’ve been a little critical of Buffett lately (see my take on his portfolio in the post Is Warren Buffett Still a Value Investor?) but I’ll be the first to admit that he got a great deal [...]

]]> By: My Take on Buffett’s Acquisition of Burlington Northern (BNI) | ModernGraham.com http://www.moderngraham.com/?p=1854&cpage=1#comment-9056 My Take on Buffett’s Acquisition of Burlington Northern (BNI) | ModernGraham.com Tue, 03 Nov 2009 15:11:19 +0000 http://www.moderngraham.com/?p=1854#comment-9056 [...] I’ve been a little critical of Buffett lately (see my take on his portfolio in the post Is Warren Buffett Still a Value Investor?) but I’ll be the first to admit that he got a great deal [...] [...] I’ve been a little critical of Buffett lately (see my take on his portfolio in the post Is Warren Buffett Still a Value Investor?) but I’ll be the first to admit that he got a great deal [...]

]]> By: Daily Blogwatch: Profit from global cooling; is the market overvalued? | OlaFinance http://www.moderngraham.com/?p=1854&cpage=1#comment-9021 Daily Blogwatch: Profit from global cooling; is the market overvalued? | OlaFinance Mon, 26 Oct 2009 17:17:09 +0000 http://www.moderngraham.com/?p=1854#comment-9021 [...] Is Warren Buffett really a value investor? [...] [...] Is Warren Buffett really a value investor? [...]

]]> By: Jean-Pierre Verhassel http://www.moderngraham.com/?p=1854&cpage=1#comment-9020 Jean-Pierre Verhassel Mon, 26 Oct 2009 14:29:49 +0000 http://www.moderngraham.com/?p=1854#comment-9020 I think that it is inevitable that Warren Buffett has moved on and developed his own strategy. He has himself stated that he uses a mix of both value and growth elements to evaluate investment candidates. Warren Buffett also states often that one should not copy others but arrive to your own conclusions.The take over of Wachovia by Wells Fargo is clearly seen by most people as a speculative and risky move.The purchase of Gillete by PG some years ago was seen as an expensive deal by most and his recent increased stake in JNJ came at a time Wall street analyst are pesimistic about drug companies and call JNJ even overvalued. The principals of Graham are still valid but the formulas in terms of arithmetic must be adapted to todays circumstances and the quality of the company and its future competitive position can only be determined by the business insight of the investor himself. It requires a rare skill and cannot be determined with any accuracy using past performance figures and formula's. Benjamin Graham has stated this himself when he described his enterprising investment methods. JPV from Switzerland. I think that it is inevitable that Warren Buffett has moved on and developed his own strategy.
He has himself stated that he uses a mix of both value and growth elements to evaluate investment candidates. Warren Buffett also states often that one should not copy others but arrive to your own conclusions.The take over of Wachovia by Wells Fargo is clearly seen by most people as a speculative and risky move.The purchase of Gillete by PG some years ago was seen as an expensive deal by most and his recent increased stake in JNJ came at a time Wall street analyst are pesimistic about drug companies and call JNJ even overvalued.
The principals of Graham are still valid but the formulas in terms of arithmetic must be adapted to todays circumstances and the quality of the company and its future competitive position can only be determined by the business insight of the investor himself. It requires a rare skill and cannot be determined with any accuracy using past performance figures and formula’s. Benjamin Graham has stated this himself when he described his enterprising investment methods.

JPV from Switzerland.

]]> By: Daily Blogwatch: Profit from global cooling; is the market overvalued? | cars burner http://www.moderngraham.com/?p=1854&cpage=1#comment-9019 Daily Blogwatch: Profit from global cooling; is the market overvalued? | cars burner Mon, 26 Oct 2009 13:01:19 +0000 http://www.moderngraham.com/?p=1854#comment-9019 [...] Is Warren Buffett really a value investor? [...] [...] Is Warren Buffett really a value investor? [...]

]]> By: Jeroen http://www.moderngraham.com/?p=1854&cpage=1#comment-9015 Jeroen Sun, 25 Oct 2009 12:31:38 +0000 http://www.moderngraham.com/?p=1854#comment-9015 I agree with AaronH. These stocks were a different story when he first bought them and it is known that Mr. Buffett prefers to hold onto a company forever, unless he no longer believes that some of the fundamentals of his investment philosophy (like the company's moat or management) are no longer intact. Indeed, Buffett has said that Fisher (not just his book, but especially meeting him and discussing investing) has changed his own investment philosophy. Furthermore, lets not forget about Charlie Munger. Some say that he was the one who really convinced Buffett not to only look at its valuation from a Graham perspective, but also to look at its potential growth and factors like management etc. Personally, I think Mr. Buffett evaluates companies first from a Fisher/Munger perspective. Once he thinks the company has enough potential, a strong moat and management etc. he applies Grahams teachings to determine is value and will wait to buy these companies with a margin of safety. Jeroen Amsterdam I agree with AaronH. These stocks were a different story when he first bought them and it is known that Mr. Buffett prefers to hold onto a company forever, unless he no longer believes that some of the fundamentals of his investment philosophy (like the company’s moat or management) are no longer intact.
Indeed, Buffett has said that Fisher (not just his book, but especially meeting him and discussing investing) has changed his own investment philosophy. Furthermore, lets not forget about Charlie Munger. Some say that he was the one who really convinced Buffett not to only look at its valuation from a Graham perspective, but also to look at its potential growth and factors like management etc.
Personally, I think Mr. Buffett evaluates companies first from a Fisher/Munger perspective. Once he thinks the company has enough potential, a strong moat and management etc. he applies Grahams teachings to determine is value and will wait to buy these companies with a margin of safety.

Jeroen
Amsterdam

]]> By: AaronH http://www.moderngraham.com/?p=1854&cpage=1#comment-9012 AaronH Sat, 24 Oct 2009 08:10:16 +0000 http://www.moderngraham.com/?p=1854#comment-9012 Long time no chat. I love this article. I think that the valuations of some of these companies have changed quite a lot since when he first bought them. How do they look when they were first added to Berkshire may or may not add to the story. His philosophy is also to hold onto good companies for a long time. In some of his talks he says he looks also at growth potential as well as looking for a good price, saying a pure Graham play is much like a cigar butt method to investing. You get one more puff out of it because it's cheap, and then it goes up again, and then you throw it away. He likes the longer term, hating to sell if he can avoid it. He has stated he was also influenced by the works of Adam Smith(not the 1770's economist but 1970's investor who wrote Supermoney) He also has leaned a little bit on Phil Fisher who wrote Common stocks and Uncommon Profits). Hope you are doing well. Aaron Long time no chat. I love this article. I think that the valuations of some of these companies have changed quite a lot since when he first bought them. How do they look when they were first added to Berkshire may or may not add to the story. His philosophy is also to hold onto good companies for a long time. In some of his talks he says he looks also at growth potential as well as looking for a good price, saying a pure Graham play is much like a cigar butt method to investing. You get one more puff out of it because it’s cheap, and then it goes up again, and then you throw it away. He likes the longer term, hating to sell if he can avoid it. He has stated he was also influenced by the works of Adam Smith(not the 1770’s economist but 1970’s investor who wrote Supermoney) He also has leaned a little bit on Phil Fisher who wrote Common stocks and Uncommon Profits).

Hope you are doing well.
Aaron

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