Buffett: “Yeah, that’ll work.”
January 17th, 2011In the late 1970s, Warren Buffett was already a guru to value investors, but unknown to the general public. As a result, he was brilliant, experienced, yet accessible: a traditional value investor I know simply invited him to lunch.
Over the meal, Warren asked what kind of investing he was doing. The investor answered with embarrassment, “Well, nothing fancy. For want of something better, I’m just sifting through Value Line for the lowest-P/E companies that still have an investment-grade credit rating.”
Buffett answered simply, “Yeah, that’ll work.”
Since then, that investor’s portfolio not only beat the S&P handily, but suffered only two down years in over three decades. He now runs a 9-figure investment partnership.
This wasn’t rocket science. As mentioned at in an earlier post, it was a game of long-term, low-rate compounding, and the self-discipline to stay on that track.
Brilliant! Great story.
credit ratings are too easy
why did you stop writing? this is one of perhaps 5 value-investing-centric sites that is worth reading. please continue
Thanks. When you put it that way, how can I say no? I’ve been cooking a few — maybe I can put something else up there in the next few days.