The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Value Investing


Subject:  BennyG's successor Part I Date:  3/23/2009  3:07 AM
Author:  raytoei Number:  3723 of 3813

It is very hard to succeed to BennyG, he lectured, he translated Greek/Latin, he had lots of girl-friends in Europe, he ran a hedge fund and he wrote several books, and he introduced the world to concepts like mr. market, intrinsic value, margin of safety and even a magic 8.5 number that confused the investment community ever since, and in his later twilight years rejected the whole notion of picking individual stocks. He lived by the maxim to do something foolish, something creative and something generous.

In terms of margin of safety investing, Buffett definitely qualifies as a successor. A lesser known candidate is Walter Schloss. Mr. Schloss ran a Master Limited Partnership for more than half a century and managed to compound 20% a year over the long period. What did he look for ? Well, WallyS was unique because he was a classical book value investor, he bought using low price to tangible book value. He also bought and held onto many stocks at once and is the opposite of the ultra-concentrated Buffett, so much so that Buffett once nicknamed him as Noah, buying two of everything. WallyG also preferred to distribute the gains back to investors rather than let the ball roll bigger, this way, he avoided the law of large numbers which plagued the performance of many larger value investors.

Not much is known about WallyG, I know that he runs his fund with his son Edwin.


ps. throw me a rec if you want me to continue this...
Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us