WELCOME TO PRICE VALUE PARTNERSWe believe in value investing as practised by Benjamin Graham, the man who taught Warren Buffett himself at Columbia Business School. In essence, Graham made two fundamental recommendations; only buy shares in high quality businesses, and when you’ve identified such businesses, don’t overpay for them.
LONG-TERM WEALTHThe key to building long-term wealth is to focus on compounding economic value over time and accepting short-term price volatility as an unwelcome but inevitable characteristic of investing. It may seem appropriate to diversify across asset classes however each security added to a portfolio should offer both a margin of safety and a positive real rate of return at current prices and operations. Investing should be focused not on optimism, but on arithmetic.
"I can only tell you that the secret has been out for 50 years, ever since Ben Graham and David Dodd wrote ‘Security Analysis’[and ever since Ben Graham followed up with ‘The Intelligent Investor], yet I have seen no trend toward value investing in the 35 years that I’ve practised it. There seems to be some perverse human characteristic that likes to make easy things difficult. There will continue to be wide discrepancies between price and value in the marketplace, and those who read their Graham and Dodd will continue to prosper."
- Warren Buffett in the Appendix to ‘The Intelligent Investor’
The problem with growth
A Grim Fairy Tale
The blackest of comedy