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At the same time he [Ben Graham] also began to realise that a large number of healthy companies with strong balance sheets were trading at deep discounts to their “intrinsic value.”

I'm glad to see they put “intrinsic value” in quotes because everybody knows what it is but no one knows how to calculate it.

Funny thing, last night I was watching a Richard Feynman lecture on quantum mechanics. The guy is amazing, I actually understood what he was talking about! That's not the funny part. In a nutshell he said that nobody knows why nature is like it is but scientists are able to come up with accurate computations about it. Just the reverse of "analysts" dealing with "intrinsic value."

... you have to read Wells Fargo’s annual report ... Wells Fargo’s most recent annual report, covering 2011, is 236 pages long.

And many of those 236 pages are about "other" items that are as mysterious as quantum mechanics. If Wells Fargo told us what they are, they would no longer be "other" black holes, would they?

Which finally brings me to "What IS a Value Investor?" It is a person who invests in things that he understands, in things where he can see, understand, and calculate or estimate an "intrinsic value," whatever that is.

Buffett might understand Wells Fargo which would make him a value investor. If we don't understand Wells Fargo then we would not be value investors buying it.

Dan asked me a few days ago why I like retail. Because I think I understand it which would make me a retail value investor. I believe I understand Kandi and it is behaving pretty much according to the way I thought it would. See "The Kandi Story Continues" at Software Times:

Denny Schlesinger

Richard Feynman on Quantum Mechanics Part 1 - Photons Corpuscles of Light.FLV

BTW: Albert Einstein said: "I, at any rate, am convinced that He does not throw dice." On the other hand, Richard Feynman shows that nature at the quantum level is probabilistic. Darwinian evolution is also non deterministic. If we are to believe all three learned men, we cannot call nature "god" as Stuart Kauffman would like to do. If nature throws dice but god doesn't then nature can't be god. Unless, of course, if nature acts like quantum mechanics and it throws or does not throw dice depending on the observer. LOL

BTW2: Is investing probabilistic?
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