Saturday, January 10, 2009

The Superinvestors of Graham and Doddsville

With this post, I’m starting a series on investing, targeted towards one specific reader – you know who you are. :)  The first thing I’d like you to read is a speech by Warren Buffett, titled The Superinvestors of Graham and Doddsville. In it Buffett explains the basic principle of value investing and the negative risk-reward correlation that value investors enjoy. About the principle, Buffett says:

“I've never seen anyone who became a gradual convert over a ten-year period to this approach. It doesn't seem to be a matter of IQ or academic training. It's instant recognition, or it is nothing.”

Soon to follow, an article from Buffett in the NY Times, which argues that now may be the perfect time to apply this principle, and he certainly is doing so.

With that, onward to the article. It’s best to download the PDF and read it along with the tables and illustrations.

Superinvestors: PDF
Superinvestors: HTML

No comments: