What's Your Pick? Benjamin Graham's 'Shotgun' or Warren Buffett's 'Rifle' - Views on News from Equitymaster

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The Equitymaster Research Digest

What's Your Pick? Benjamin Graham's 'Shotgun' or Warren Buffett's 'Rifle'
Apr 13, 2017

Warren Buffett's mantra for investment success could send shivers down your spine.

On being quizzed about successful value investing, he usually holds up a big, fat book and says....

  • Read 500 pages like this every day. That's how knowledge works. It builds up, like compound interest.

There goes your dream of stock market riches.

We know investing is hard work. But to read 500 pages, most of which is dull commentary on the financial performance of listed companies, is asking too much of the retail investor.

The Way Out

Thankfully, there's a way out. And ironically, has Warren Buffett leading the way.

You see, before Buffett met Charlie Munger, the Oracle of Omaha was your typical Grahamian value investor.

He believed in paying a good price for a fair business instead of fair price for a good business.

The strategy is also called Cigar Butt Investing.

Here's Buffett on this strategy in his 2014 letter to shareholders:

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