bruce greenwald value investing
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If you trade the forex markets regularly, chances are that a lot of your trading is of the short-term variety; i. From my experience, there is one major flaw with this type of trading: h igh-speed computers and algorithms will spot these patterns faster than you ever will. When I initially started trading, my strategy was similar to that of many short-term traders. That is, analyze the technicals to decide on a long or short position or even no position in the absence of a clear trendand then wait for the all-important breakout, i. I can't tell you how many times I would open a position after a breakout, only for the price to move back in the opposite direction - with my stop loss closing me out of the trade. More often than not, the traders who make the money are those who are adept at anticipating such a breakout before it happens.

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Bruce greenwald value investing

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Buying a company for substantially less than tangible book value or the well-tested value of its earnings is already a low-risk strategy. Using a valuation based on assets as a check on a valuation based on earnings power, all the while refusing to pay much if anything for the prospects of growth, further limits risk.

If an ordinary portfolio one not selected on value grounds needs 20 or 30 names to be adequately diversified, then perhaps the margin of safety portfolio needs only 10 or Value investors also control risk by continually challenging their own judgments. Since many of their decisions run against the grain of prevailing Wall Street sentiment, they look for some credible confirmation of their opinions.

For example, if knowledgeable insiders are buying the securities even as the market ignores the stock, the investor gains a measure of assurance. Position limits are an additional safeguard. Investors establish policies that limit the amount of the portfolio they will commit to a single security. They can have one limit for the initial purchase and another standard for securities within the portfolio. If a position appreciates above those limits, it is a signal to trim back by selling into strength.

This is certainly a form of diversification, but it is designed more to limit the exposure to any particular investment than to mimic the behavior of the broad market. The calculation of intrinsic value, though, is not so simple. As our definition suggests, intrinsic value is an estimate rather than a precise figure, and it is additionally an estimate that must be changed if interest rates move or forecasts of future cash flows are revised.

Though the mathematical calculations required to evaluate equities are not difficult, an analyst-even one who is experienced and intelligent-can easily go wrong in estimating future "coupons. First, we try to stick to businesses we believe we understand.

That means they must be relatively simple and stable in character. If a business is complex or subject to constant change, we're not smart enough to predict future cash flows. Incidentally, that shortcoming doesn't bother us. What counts for most people in investing is not how much they know, but rather how realistically they define what they don't know. An investor needs to do very few things right as long as he or she avoids big mistakes.

Second, and equally important, we insist on a margin of safety in our purchase price. If we calculate the value of a common stock to be only slightly higher than its price, we're not interested in buying. Risk is "the possibility of loss or injury. This is an antidiversification device, and it has a manifold influence on their entire investment process. First, they need to have two types of confidence in the selection: confidence in their ability to understand the company, its industry, and its business prospects; and confidence in the company, that it will continue to perform well and increase the wealth of its shareholders.

Chieftain portfolio has far fewer than the 20 names that a strict 5 percent rule might imply. The partners normally hold 8 to 10 stocks in their accounts, and they are willing to invest heavily in a situation that they are thoroughly convinced will work out for them. To improve their odds, all four professionals in the firm study the same stocks, and they have to agree before they buy a share. If diversification is a substitute for knowledge, then information and understanding should work in reverse.

If it normally holds shares in 10 or even fewer companies, then on average it needs to put hundreds of millions into any one name. Because great situations are so difficult to find, they are prepared to buy 20 percent or more of any one company. While there are around 1, or more companies large enough for them to own, their "good business" requirement probably shrinks that list by 80 percent, leaving them with no more than possible Chieftain is not attracted to turnaround companies or cyclicals, where a successful investment depends on timing.

He does not believe in speculating that an underperforming company will be taken over, because most managements resist selling out. Before the arrival of the personal computer and the electronic spreadsheet, he and his partner would analyze a company by isolating its business segments and projecting revenue and expenses no more than two or three years into the future.

By assuming that it would grow steadily from then on, they could calculate its current value by discounting that cash flow back to the present, using only a hand calculator. Now, with spreadsheets, they can make their projections more detailed and carry them forward further in time. Discounted cash flow analysis, a method about which we expressed some reservations in the first part of this book, is Greenberg's valuation technique of choice for all the investments he makes.

He is only interested in companies with stable earnings and relatively predictable cash flows. And he is careful to make sure that all of the assumptions that are built into a present value analysis are reasonable and conservative: sales growth rates; profit margins; the market prices of assets such as oil, gas, and other fuels; capital expenditure requirements; and discount rates. Common sense serves as the touchstone against which all spreadsheet projections are assessed.

He uses the model; he doesn't let it control him. The real value of doing all the work required for a full discounted cash flow analysis is that it forces the investor to think long and hard about all the factors that will affect the future of the business, including the risks it may face that are currently unexpected and unforeseen.

With few stocks in their clients' portfolios, each of them purchased as a long-term investment, the partners of Chieftain do not need to find many new companies to add to their list. In some years, they buy no additional names, in other years three or four. This slow turnover leaves them time to keep thoroughly informed about the firms they do own, a necessity given the large stakes they maintain in each of their companies. All the partners go to the companies' meetings; all of them scrutinize the quarterly filings; and all of them keep current about the industry.

They talk with management regularly, and they read the trade journals and other relevant material. In addition to the superior returns we described, their work has earned them the respect of the executives with whom they speak. They have been told by management that they understand the company better than all sellside analysts covering it. Greenberg readily acknowledges, they make plenty of mistakes and are often quite inexact in their estimates of a company's revenues and earnings.

They tend to err on the high side, which puts them in the camp of most analysts. How then have they done so well? For one thing, as value investors, they have not based their investment decisions on expectations of perfection. They do not buy high multiple stocks for whom an earnings disappointment can mean a punishing drop The companies in their portfolio are sound enough to recover from short-term problems.

As a consequence, the mistakes they have made have not buried them. Their poor investments, Greenberg says, have resulted more in dead money than fatal declines. By establishing the ranges with precision, this approach provides a check on the emotions that can distort investment judgment, both the exuberance engendered by a rising market and the despair occasioned by a falling one.

To estimate the intrinsic value of a firm, Price asks one question: How much is a knowledgeable buyer willing to pay for the whole company? He finds his answer by studying the mergers and acquisitions transactions in which companies are bought and sold. It is important to wait for the market to offer a price with a discount large enough to allow for a margin of safety.

It is much easier to understand a security than an economy, and the way to profit is by using that understanding. Their office-Castle Schloss has one room-is spare; they don't visit companies; they rarely speak to management; they don't speak to analysts; and they don't use the Internet. The Schlosses would rather trust their own analysis and their long-standing commitment to buying cheap stocks.

This approach leads them to focus almost exclusively on the published financial statements that public firms must produce each quarter. They start by looking at the balance sheet. Identifying "cheap" means comparing price with value. What generally brings a stock to the Schlosses' attention is that the price has fallen. They scrutinize the new lows list to find stocks that have come down in price. When they find a cheap stock, they may start to buy even before they have completed their research.

Schlosses believe that the only way really to know a security is to own it, so they sometimes stake out their initial position and then send for the financial statements. The market today moves so fast that they are almost forced to act quickly. Feb 22, Joe Cosentino rated it liked it. I read this book because I'm currently enrolled in Greenwald's Value Investing course and wanted to dig a bit deeper. This book is very good for anyone interested in the basic precepts of value investing basically, looking for good companies that are currently out of favor with the stock market.

Bruce gives a good summary of the traditional value approach as devised by Benjamin Graham and David Dodd, and also profiles a handful of more contemporary value investors Warren Buffett, Mario Gabell I read this book because I'm currently enrolled in Greenwald's Value Investing course and wanted to dig a bit deeper.

Bruce gives a good summary of the traditional value approach as devised by Benjamin Graham and David Dodd, and also profiles a handful of more contemporary value investors Warren Buffett, Mario Gabelli, etc. It was interesting to read about the various practical approaches to value investing to get beyond just theory. I may have preferred more if I was newer to the material.

There are some really good case studies, and he clearly articulates concepts like Warren Buffett's "franchise businesses" and Mario Gabelli's idea of a "Private Market Value" using businesses like WD you have a can in your home and you may not even know it. This book is good for anyone who wants a methodical framework for assessing the value of equity securities. A word of caution, however, the behavioral tantrums of "Mr. Market" make value investing much harder in practice!

Oct 07, Mahadevan Sreenivasan rated it it was amazing. This book has been an eye opener to me. Tools like DCF suffer from a major problem - the need to predict future earnings which is difficult to predict even for the company stakeholders. Greenwald's method looks at what it takes to value a company if it wants to sustain without any growth. Chapters 4 - 7 This book has been an eye opener to me. Chapters 4 - 7 are a must read for any budding investor. It starts out with the most defensive method of investing which tries to value the reproduction cost of assets in the balance sheet.

Finally one can try to apply a growth factor if one finds that the company truly has a moat and is in a growth phase. If you are new to the world of value investing, I would suggest to pick up Peter Lynch or Pat Dorsey before attempting to read this book.

Jun 14, Vincent rated it it was amazing Shelves: business. If you consider yourself a hardcore value investor, and really want to delve deep into the nuts and bolts of the methodology, then this is the supreme guidebook for you. There are several methods you'll read in this book, which you will find nowhere else. In other words, what would the company earn if it didn't have any expenses on facilitating gr If you consider yourself a hardcore value investor, and really want to delve deep into the nuts and bolts of the methodology, then this is the supreme guidebook for you.

In other words, what would the company earn if it didn't have any expenses on facilitating growth. Included in the book are examples of the theory put into practice, which greatly helps the learning process. I found the investor profiles in the third section more useful than the rest.

Some of the earlier chapters are followed by short appendices, those were helpful. In some cases, the approaches discussed involve investing enough money in a business to have control over its direction which isn't practically useful for me.

Also, published in , it felt dated as it heralded investment research strategies used before the internet and thus financial data was widely available. Even the book often admits I found the investor profiles in the third section more useful than the rest. Even the book often admits that finding businesses that are like the ones found by the great investors discussed and, this is key, not everyone else, are hard to come by today.

Nov 03, Jonathan Waite rated it really liked it. The first two parts are very important for value investors to read and understand in framing financials in terms of investment opportunity. The last part about the various investment managers is just OK - great investors talking about good picks and their process. These are interesting tales, but not always easy to replicate in real life. Every now and then there were good nuggets in Part 3 about process.

Otherwise, the first part has great, applicable tools for the investor to use prospectively The first two parts are very important for value investors to read and understand in framing financials in terms of investment opportunity. Otherwise, the first part has great, applicable tools for the investor to use prospectively, which is what makes this book a great investment book. Aug 21, Tirath rated it really liked it. This may be the modern book that a newbie should buy and learn value investing from.

His mathematical concepts of growth and ROC are worth a read but dont fit my style. The mini profiles at the end of the book are good fun. And the book is full of small examples which would help a student. Rather useless for someone who is already a value investor.

Aug 27, Ashish rated it really liked it Shelves: to-read-again. The book is good to read for understanding the value investing techniques. It compares the investment technique of many well-known investors. It is not very well written but must to read if you have not read good material on this topic. The book loses the interest of reader after a while.

Jun 04, Christoph Suter rated it it was amazing. Will re-read a few more times. Jul 02, Alex rated it it was amazing Shelves: investing. Jul 18, Tom Qiao rated it it was amazing. Great introduction to an updated value investing approach! Very good supplemental to any value investing course.

Dec 30, J rated it it was amazing. Jan 13, Karan Maroo rated it it was amazing. This is the richest book I've read on value investing. An absolute treat for the brains This is the richest book I've read on value investing. An absolute treat for the brains Aug 22, InvestingByTheBooks. Ben Graham taught value investing with David Dodd at Columbia, starting in Since then, Columbia has been the academic center for value investing.

After some years in the shadow of Modern Portfolio Theory, Professor Greenwald brought back value investing teaching to Columbia in The logic is the same, but the operationalization is adapted to current standards of pricing of assets. His acknowledged course is the starting point of this book. We need to do a lot of input - for many years. But few of us excel in forecasting.

Slight changes in input variables change the value of the stock significantly. Is there a better way? Usually reproduction cost is equivalent to earnings power value. Sometimes, with a truly good management team, earnings power value slightly exceeds reproduction cost value. Only for companies with a true competitive advantage — usually economies of scale with either patents or some consumer captivity — are calculations of profitable growth value needed. It is far easier to forecast long-term value drivers for these building blocks than to do a common DCF analysis; moreover, the outcome is easier to understand.

How much do I pay for estimated growth? What is an informed industrial buyer prepared to pay for the assets? You will never return to doing DCFs as your primary valuation approach. Part three of the book is about value investing in practice, with profiles of eight value gurus such as Seth Klarman, Walter and Edwin Schloss, Mario Gabelli, Glenn Greenberg etc. I have read many books about security analysis and valuation. Some have been very good but none has helped me as much with practical valuation as Value Investing.

The margin of safety to buy this book is enormous. This easy- to-read book is for everyone including very experienced analysts, except for those that focus on earnings surprises. I have read this book several times, and I believe you will too if you belong to the value investing tribe.

Sep 20, Harry Harman added it. Technicians avoid fundamental analysis of any kind. They pay no attention to a company's line of business, its balance sheet or income statement, the nature of its product markets, or anything else that might concern a fundamental investor of any stripe. They care nothing for economic value. Instead they focus on trading data, that is, the price movements and volume figures for any security.

They believe that the history of these movements, reflecting the supply and demand for that security over time, traces patterns that they can analyze to infer future price movement. They construct charts to represent this information, and they scrutinize them for signs that will predict how prices will move next and thus allow them to make a profitable trade.

For example, momentum investors extrapolate the current price trend, buying securities whose prices are rising in the expectation that they will continue to go up. Sometimes they compare the day's price for the security to a trend line made up of a moving average of the last 30, 90, , or some other number of days' prices. Crossing that trend line, up or down, can indicate a change in direction. Surely they intend to buy low and sell high, but low and high here refer to the previous and future prices of the security, unconnected to its fundamental value.

For technical investors, Mr. Market is the only game in town. It is also a game that lends itself to trading—buying and selling over a short term. Very few traders ignore technical information. Today's chartists are much more likely to use sophisticated computerized algorithms to detect patterns, and to search for those patterns among different security prices rather than focus on the price history of a single security.

But like most technicians, they are at best marginally interested in the fundamental economic value of the businesses underlying the securities. May 10, Peter S rated it it was amazing. First half of the book went through the tenets of value investing, how it has evolved, how value investing could capture growth with a great chapter on Intel and how value investors manage a portfolio. The second half profiles a few great value investors from various parts of the spectrum - Klarman, Schloss's, and Heilbrunn on the classic end of the spectrum meaning most similar to Graham and Dodd , Gabelli and Price as mixtures, and Buffet and Greenberg as contemporary combining value with a fisher approach.

The best part of this book was definitely its discussion on franchise value and EPV. Only within a franchise is growth worth anything. We will call this amount free-entry earnings, indicating no special advantage. If it does enjoy a franchise, then the earnings attributable to that franchise are the actual EPV we calculated minus the free entry earnings. I recommend to anyone who liked the Intelligent Investor but wanted to learn more.

May 12, Leo Desmedt rated it really liked it. Value Investing From Graham to Buffet and many more successful personalities. This book teaches you 'the better way' towards sustainable investment of individual stocks. This book shows various strategies from value investors containing diverse implementations, each investor has a set a rules in alignment with their investing style. The principles of value investing created by Ben Graham is a complementary to "The Intelligent Investor", offering a more pragmatic viewpoint and some practical techniq Value Investing From Graham to Buffet and many more successful personalities.

The principles of value investing created by Ben Graham is a complementary to "The Intelligent Investor", offering a more pragmatic viewpoint and some practical techniques that includes calculation. However a "One size fits all" strategy doesn't exist, principles are shared and respected between value investors. Hereafter are some of them: - Independent decisions don't be fooled by Mr.

Market - Take a hard but realistic look over the company you plan to invest in - Leave your ego and assumptions at home - Don't be too greedy, be realistic - Do not try to time the market - Make your own calculations - Spread the risk over intelligent diversification Anyone who want to start investing into stocks for their future should get the hand on "The Intelligent Investor" at first. If you don't want to spend quality time researching, you should probably invest into ETFs instead.

I appreciated The Value Investors side of this book proving the flexibility of different techniques used to limit risk and enhances a independent financial future. Dec 23, Nam KK rated it liked it. I enjoyed Greenwald's Competition Demystified very much, and Value Investing offers another revisit on companies' competitive advantages from the valuation standpoint. It is very worth reading for the first half.

Because of Greenwald's value investing approach and of the time of the book my version was in , the book places a heavy focus on the company's book, lesser on earnings power, and much less on growth. Reading the book nearly 20 years after it was published, I don't agree nor disagr I enjoyed Greenwald's Competition Demystified very much, and Value Investing offers another revisit on companies' competitive advantages from the valuation standpoint.

Reading the book nearly 20 years after it was published, I don't agree nor disagree with the author. There's one time for value, there's another time for growth, and there's time to go fishing. The wheel of time might just turn around like that forever, who knows? But at the end of the day, in a past world of limited capital, when few capital chased a lot of assets, asset price was cheap, and value investing hold its throne. In a present world with a ocean of liquidity and capital, value investing might just be less relevant.

The second part on known investors is not that good. You can have better sources for Buffett, Klarman etc. Disclosure: I long Tesla. Apr 29, Pedro rated it it was amazing Shelves: value-investing. Short and easy to read book on value investing. Great book for getting basic to intermediary knowledge on the Short and easy to read book on value investing. Great book for getting basic to intermediary knowledge on the topic! Feb 05, Sumukh rated it it was amazing Shelves: valuation. The best book I have read about value investing.

This book describes how to value a business based on its competitive advantage, which I believe is real valuation of any company. Most of the valuation books focus on cashflows which are highly unpredictable. The knowledge described in the book is not found in any investment or finance book in the world CFA curriculum included. A highly recommended book by me. Edition May 16, Jose rated it it was amazing. What happens when a young Wall Street investment banker spends a small fortune to have lunch with Warren Buffett?

He becomes a real value investor. But the path was not so straightforward. Spier reveals his transformation from a Gordon Gekko wannabe, driven by greed, to a sophisticated investor who enjoys success without selling his soul to the highest bidder. By: Guy Spier. If you want to invest in stocks and build a fortune, then keep reading! Stock investing is the best way to build generational wealth, and the greatest investors know that. To join the club of the few profitable investors that beat the market year after year, you need the right tools and strategies.

And who can teach you better than the greatest investors ever? The investment strategies in this audiobook have one goal in mind: Making you as much money as possible while saving you time! By: Michael Potter. Billionaire investors. Clearly, they possess a kind of genius - the proverbial Midas Touch. But are the skills they possess transferable? And do they have anything to teach us besides making money? As he discovered, their talents extend well beyond the financial realm.

By: William Green. University of Berkshire Hathaway is a remarkable retelling of the lessons, wisdom, and investment strategies handed down personally from Warren Buffett and Charlie Munger to shareholders during 30 years of their closed-door annual meetings.

From this front row seat, you'll see one of the greatest wealth-building records in history unfold, year by year. If you're looking for dusty old investment theory, there are hundreds of other books waiting to cure you of insomnia. However, if you're looking for an investing book that's as personal as it is revelatory, look no further. By: Daniel Pecaut , and others. Howard Marks, the chairman and cofounder of Oaktree Capital Management, is renowned for his insightful assessments of market opportunity and risk.

After four decades spent ascending to the top of the investment management profession, he is today sought out by the world's leading value investors, and his client memos brim with insightful commentary and a time-tested, fundamental philosophy. The Most Important Thing explains the keys to successful investment and the pitfalls that can destroy capital or ruin a career. By: Howard Marks. The classic, seminal work in the field Value Investing has been updated in a new second edition to include the latest trends and a close look at some of the emerging investors who continue in the value investing tradition of Ben Graham and Warren Buffett.

Featuring an exploration of the history of value investing and those who brought this investment approach to the fore, you will also discover the real-world techniques you can use to propel your own portfolio using a sound, proven approach to discovering value. In the modern era, investors are increasingly caught up in so-called hot tips, can't-miss start-ups, excessive optimism, and short-term speculation. Value investing is the antithesis to these short-sighted approaches and stresses what Ben Graham - the father of value investing - referred to as the "margin of safety" when describing the gap between an equity's price and its value.

Value Investing, Second Edition is your guide to implementing value investing principles in your own portfolio, complete with a look at the approaches used by the best value investors past and present.

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We are not allowed to sell this product with the selected payment method. Pay using card ending in. Taxes where applicable. Copy Link. Listeners also enjoyed Pollak Length: 32 hrs and 23 mins Unabridged Overall. Pollak Length: 7 hrs and 55 mins Unabridged Overall. Publisher's Summary Beat the market with the tips and techniques from the best value investors in the world.

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And one of you is wrong. So there's an absolutely fundamental sense in which you've got to start off thinking that markets are efficient. You want to structure things so that you're on the right side of the trade, that the people on the other side of the trade are, in some sense, doing irrational things. I think what Graham saw was that the best indicator of irrationality -- sort of a systematic, statistical indicator of irrationality on the other side -- is when things get oversold.

And the way we talk about this in the course [the course he teaches at Columbia] is the search strategy. You look for cheap stocks, but you look for more than that. You want to be in a race where, ideally, you are the only one looking at the stock. The boring and ugly are good. Because I think Graham understood that psychologically, people just shied away from those stocks, and they, therefore, tended to get oversold.

Robert Heilbrunn, who actually endowed my chair, tells a story about that. He went to Ben Graham with all these high-rated bonds, and Ben Graham told him to sell them. Then he went to buy some deeply discounted bonds that were questionable.

He went to his broker to buy them on Graham's advice. And his broker said, "We're not the kind of broker that buys bonds like that. Ugly, traded-down, cheap, boring -- as opposed to glamorous, respectable, lottery-ticket type stocks, and prominent stocks -- are things that you want to be set up to look at as a value investor. So that's the first part of it. That's the search strategy. Unfortunately, in modern language, that's almost gotten to be the whole thing in a certain debased way.

So that gets you a long way. But I think to do better than that, as a real value investor, you have to not just look for cheap and take advantage of the historical statistics. You have to ask, "Where, within this universe even of cheap stocks, can I find trades that I'm going be on the right side of? So that's the first step in value investing. It's to have a search strategy, so when you think you locate a bargain and you have to ask yourself the question, "Why me God?

Why has God made this bargain available only to me? And that's the first thing. And, unfortunately, that in a debased form is what gets called "value investing. The second thing you have to have is a good technology for valuing what you're buying. Greenwald: What you want to do is to have a technology that brings all the available information to bear, so you can cross-correlate the asset values with the earnings-power values, with your judgment about whether there's a franchise here.

That if you're going to buy growth, you're absolutely certain that the franchise is there so the growth is going to be valuable. So the second thing -- you've located a promising stock -- and then, what a good value investor will have is a first-rate valuation technology.

The Graham technology is starting with the most reliable information, which is asset value, then looking at the second-most reliable information, which is current earnings -- with all the appropriate adjustments and getting an earnings-power value -- and then looking at those two and see what they tell you about the extent to which you are buying a franchise, which is value in excess of assets.

And then, only then, looking at the growth. I think that's far superior than doing an undiscriminating cash flow analysis, where you can't really tell what the crucial assumptions are. So good value investors then bring a first-rate valuation discipline to the market. And that's the second part of it. If you've got somebody who's only talking about growth prospects or short-term earnings prospects, you're going to be in trouble.

First of all, he doesn't buy tech stocks that are in fashion. He does tech stocks that are out of fashion. Secondly, he's pretty careful about valuation. I don't agree with his story about Amazon NASDAQ:AMZN , but he is careful about taking out the amortization of the various stupid acquisitions that Amazon has done in the past and looking at the real profitability and real earnings power.

So if nothing else, this discipline of starting with what you know, which is the assets, then the earnings power, then the franchise -- whether it's there or not -- and then the growth; that whole sequence of things at least makes you look very carefully at what you're buying rather than getting caught up in the moment. So you've got a decent search strategy.

You've got a decent valuation strategy as a value investor. And the third thing you have to have is discipline and patience. In the story I'm going to tell you about discipline and patience and the value strategy is about Paul Sonkin -- his name is on the book -- who was put into business by a set of value investors, myself among others.

He's just performed phenomenally. Greenwald: He has a strategy of very, very small stocks. But that means he's the only one there. So he satisfies the first criteria. He's got the basic valuation methodology. But one of the things we did in looking at his trades is that we looked at what he would have made if, when he made the first purchase of the stock -- the first time he bought it -- he just bought it there and he'd sold it at the first sales.

So that he'd just done one buy decision and one sell decision, as opposed to buying it first, finding out, oops, the stock has continued to go down, but continuing to buy on the down side, having confidence in your valuation judgment. We've got Walter Schloss's archives, and it looks like -- we haven't got the numbers yet -- a large percentage of Walter Schloss's returns have come also over time from knowing that you're buying something worth buying.

And then when it goes down, not getting frightened and dumping it, but continuing to buy. And then selling on the way up. Looks like that does a lot better than just averaging down. That's their strategy, she said: Lowest average cost wins. I suppose that's confirmed now.

Greenwald: That's exactly right. But notice what that depends on. You have to have confidence in your valuation. And you have to have the discipline to stick with it, that if this is a good stock and nothing has changed about the underlying value of the company, then if it's a good stock at 8, then it's a better stock at 4, rather than people who will see a stock go from 8 to 4 and say, "Oh crap, something's going on here that I don't know about.

Greenwald: Who would think that and dump the stock. But for almost a decade after Roger Murray retired, that tradition lay dormant. There will be a wonderful collection of speakers, many of whom have been past guests on the podcast, as well as some very distinguished value investors who will be visiting from Europe.

We hope to see you there and until then, thank you for listening and Happy Holidays! Be sure to subscribe on Apple , Google , Spotify , or wherever you get your podcasts. And feel free to drop us a line at valueinvesting gsb. Send feedback. Value Investing with Legends Dec 20, More episodes from Value Investing with Legends.

Ashvin Chhabra - The Aspirational Investor. How do you create a portfolio strategy that takes into account both safety and the pursuit of your aspirational goals? The Simons Foundation is dedicated to advancing research in mathematics and the basic sciences and is currently one of America's largest private funders in those areas.

He's also the author of a terrific book, The Aspirational Investor, which was published in Ashvin holds a Ph.