Warren’s Way

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Graham’s greatest student, Warrant Buffet, has become the world’s most successful investor by putting new twist on Graham’s ideas. Buffet and his partner, Charlie Munger, have the market with their own innovative emphasis on future growth. He looks for what he calls “franchise” companies with strong consumer brands, easily to understandable businesses, robust financial health, and near-monopolies in their markets, like H&R Block, Gillette, and the Washington Post Co. Buffet likes to snap up a stock when a scandal, big loss, or other bad news passes over it like a storm cloud- as when he bought Coca-Cola soon after its disastrous rollout of “ New Coke”, and the market crash of 1987. He also wants to see managers who set and than through acquisition; allocate capital wisely; and do not pay themselves hundred-million-dollar jackpots of stock options. Buffet insists on steady and sustainable growth in earnings, so the company will be worth more in the future than its today.

Author Benjamin Graham, The Intelligent Investor. The Definitive Book on Value Investing.

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