Is Warren Buffett a Value Investor?

The best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return. Warren Buffett The quote above is a far cry from value investing as described in such canonical works as Graham and Dodd’s Security Analysis (1934). Those works tended to focus on asset rich companies – especially firms with easy to value assets like cash and working capital. The idea was to buy shares at a significant discount to intrinsic value. A lousy company with easy-to-value assets of $100 per share might still be a …