The 10 Greatest Value Investors of All Time
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ." - Warren Buffett
Value investing has proven to be one of the most successful long-term investment strategies. The top value investors use careful research and strict discipline to find undervalued stocks that can deliver exceptional returns over time. Here are the 10 greatest value investors and a quick overview of their approaches:
Warren Buffett
The legendary investor and CEO of Berkshire Hathaway selects companies with strong economic moats, competent management, consistent earnings, and upside potential. His long investment horizon allows compounding to work its magic.
2. Charlie Munger
Vice chairman at Berkshire Hathaway, Munger believes in making selective bets on great companies selling at a fair price rather than cheap companies with issues. He focuses on simplicity, discipline, patience, and temperament.
3. Benjamin Graham
The "Father of Value Investing" pioneered buying stocks trading far below their intrinsic value - calculated by careful financial analysis. He invested in strong companies temporarily down on their luck.
4. John Templeton
This pioneer of global investing searched for bargain stocks with minimal downside that were trading for less than their asset value or earnings power. He had a flexible approach, adjusting his criteria to prevailing market conditions.
5. Seth Klarman
Taking inspiration from Benjamin Graham, Klarman makes concentrated bets on complex securities using exhaustive independent research. He seeks a significant margin of safety by paying far below likely value.
6. Joel Greenblatt
Greenblatt uses a highly disciplined, quantitative approach to identify companies earning an exceptionally high return on capital with a temporary earnings setback. This combination can signal dramatic mis pricing.
7. Peter Lynch
Focusing heavily on a company's financials and overall business narrative, Lynch invests in understandable firms benefitting from strong macro growth trends overlooked by the market. He believes outstanding companies selling at a discount will outperform.
8. Howard Marks
A disciplined memo writer, Marks takes emotion out of investing and leans on insightful financial analysis. He concentrates his efforts on contrarian bets during periods of investor fear or greed.
9. Mohnish Pabrai
Drawing inspiration from Warren Buffett and Charlie Munger, Pabrai invests in simple, predictable companies with durable competitive advantages led by ethical, able managers available at a steep discount. He holds concentrated positions for the long term.
10. Guy Spier
Spier seeks companies helmed by able, trustworthy managers leading firms with a sustainable competitive edge trading substantially below intrinsic value. He believes in investing for the long term and models Warren Buffett.
Who did I leave out or put in the wrong spot?