Thursday, January 22, 2015

16 Tips from Walter Schloss

Who is Walter Schloss?

Walter was a student of Ben Graham and was an amazing value investor. Below is something that he wrote back in 1994, but I think it is still pretty applicable in today.

Walter was an amazing deep value investor, which is no wonder why he talks about price and book value a lot. Basically, he milked the buy low, sell high strategy to riches by simply figuring out a system to identify stocks that are valued low to buy.

With US stocks just off all-time highs after one of the longest bull runs in history, perhaps thinking of adopting a deep value strategy might help cushion any blows from a downturn.


Personally, I like rule #3 and #11 the best, they highlight his strong preference of deep value investing, which focuses on return OF capital, not return ON capital.

If you identify an investment with almost no more downside risk anymore, what's the worse that could happen?

1 comment:

  1. ...my vote rule #4 and rule #13

    But the whole list is great.
    From The Great Mr Schloss.
    Thanks.

    Andre
    http://andremonk.com/

    ReplyDelete

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